Compensation window for prepayment meter installations

Energy suppliers may owe compensation to customers who had a prepayment meter installed in their home, or who were switched to prepayment remotely, between 1 January 2022 and 31 January 2023, according to the disability charity Scope¹. The charity's guidance, last reviewed on 8 January 2025, states that suppliers should write to affected customers to tell them whether they will receive compensation¹.

Scope says energy suppliers must follow new stricter rules before they can install a prepayment meter without a household's consent¹. It directs readers to Ofgem's list of suppliers that can install prepayment meters without household permission¹.

The guidance sets out who can join the Priority Services Register, which tells a supplier about a household's circumstances¹. Scope lists eligibility as: having reached State Pension age; being disabled; recovering from an injury; having a hearing or sight condition; having a mental health condition; being pregnant; having children under 2; having extra communication needs, such as not speaking or reading English well; needing a continuous supply for health reasons, including dependence on powered medical equipment; and having severe health issues including terminal illnesses or a medical dependency on a warm home, such as emphysema, chronic bronchitis or sickle cell disease¹.

Scope also lists circumstances in which a household should contact its supplier urgently if it is told a prepayment meter will be installed: a need for continuous supply for health reasons, including dependence on powered medical equipment; someone over 75 without support in the house; children under 2; no-one able to top up the meter due to physical or mental incapacity; and residents with severe health issues including terminal illnesses or a medical dependency on a warm home¹.

On prepayment meters generally, Scope says the gas or electricity supply stops when the meter runs out of credit, and that suppliers can provide emergency credit, with the amount depending on the supplier¹. Emergency credit must be paid back, either in full the next time credit is added or in small amounts with each top-up; Scope gives the example of a £10 payment providing £9 of energy and paying off £1 of debt¹. Where a customer cannot repay debt on the meter, Scope says the supplier must work with them to agree an affordable amount to repay¹.

The type of meter a household has may depend on the type of building, the landlord or housing association, and background checks on finances called a credit check¹. Moving to a credit meter is easier if the household already has a smart meter, and the switching process depends on the supplier¹. Depending on the supplier, there may be a charge to move a meter, while changing to a smart meter is free¹. A smart meter allows credit to be topped up online¹. If a meter cannot be accessed, a supplier could move it to a more accessible position or change the customer to a smart meter¹.

Why it matters for households

The compensation question applies to a defined window: installations and remote switches to prepayment between 1 January 2022 and 31 January 2023¹. Scope says the supplier should make contact by letter, so households in that group are told whether they will be paid rather than having to establish it themselves¹. The guidance does not state the amount of any compensation, how it is paid, or a deadline for receiving it; those details have not been reported¹.

For households on prepayment meters more broadly, the practical features described are a supply that stops when credit runs out, emergency credit that must be repaid, and debt repayment arrangements that the supplier must agree at an affordable level¹. Standing charges apply regardless of how much energy is used¹. Households with health needs, young children or communication needs may be able to join the Priority Services Register so the supplier is aware of their circumstances¹.

What happens next

Scope's page was last reviewed on 8 January 2025 and does not set out a closing date for compensation claims or a timetable for supplier letters¹. It advises contacting the supplier urgently if a prepayment installation is proposed and any of the listed circumstances apply, and points to Scope's Disability Energy Support service for help where a meter cannot be topped up or supply has been switched off¹.

More on consumer protection is available in the site's guide.