Suppliers commit not to compel customers in debt onto pre-payment meters over Christmas

Electricity and gas suppliers have committed not to compel customers in debt to move onto a pre-payment meter between 16 December 2022 and 20 January 2023 unless the customer specifically requests it, under a Consumer Energy Charter developed with the Utility Regulator, the Department for Communities, the Department for the Economy and the Consumer Council¹. The commitments were made on a voluntary basis and signatories will use best endeavours to implement them as soon as they can and adhere to them to 31 March 2023¹.

The charter also covers debt repayment. From 1 December 2022, suppliers will support those in debt by reducing the debt repayment amount from a maximum of 40% down to 20%, and will undertake a bespoke assessment of the customer's ability to pay¹. Under the existing Code of Practice overseen by the Utility Regulator, a supplier can deduct up to 40% from a purchase of electricity or gas to reduce debt; by signing up to the charter, suppliers have agreed to halve that figure, meaning at least 80% of any new payment will go to securing additional supplies of gas or electricity².

Other commitments include suppliers contacting those on their customer care registers to inform them of the best available tariffs, and staff being appropriately trained to deal with the needs of vulnerable consumers¹. The charter states that suppliers, government and consumer bodies will together provide up-to-date, accurate information to consumers through the Consumer Council's website and their own social media channels¹.

The Consumer Council said the charter is designed to help consumers in need, and that while its protections extend to all households, in practice customers in debt or who are vulnerable because of age, disability or chronic illness are more likely to avail of the protections it offers². Each gas and electricity supplier is required to compile and maintain a customer care register storing details of consumers who merit special treatment on account of age, disability or chronic illness, but consumers have to choose to join it².

On the hardship fund, contributions will be made to a fund or to another charity of the suppliers' choosing or to in-house funds managed by the companies themselves, and the amounts donated are at the discretion of each individual supplier². Who is eligible for support and how they can access help is being handled by the funds themselves².

The Consumer Council said the commitments are voluntary because making them mandatory would have required changes in supplier licences, which can only take place after lengthy consultation². The Utility Regulator will nevertheless monitor suppliers' behaviour to ensure they honour the commitments they have made². The sources do not state how many suppliers have signed up, nor the total amount committed to hardship funds.

Why it matters for households

The pre-payment meter protection runs from 16 December 2022 to 20 January 2023, so it covers the Christmas period only; the wider charter commitments run to 31 March 2023¹. Households in debt to their supplier who buy gas or electricity on a pre-payment meter will see the maximum deducted from each purchase fall from 40% to 20% from 1 December 2022, so a larger share of each payment goes towards energy rather than arrears¹. Customers on a supplier's customer care register keep the protection against being moved onto a pre-payment meter beyond the Christmas window, unless they request the move¹. The charter applies to electricity and gas customers in Northern Ireland, where it was developed with the Utility Regulator and the devolved departments². The Consumer Council advises consumers who need help or support to contact suppliers directly, and says information should be on suppliers' websites².

What happens next

The charter commitments are to be adhered to until 31 March 2023¹. The Consumer Council said it will continue to monitor the situation for consumers and, should the need for these protections continue, will discuss further options with suppliers². The Utility Regulator will monitor suppliers' behaviour to ensure they honour the commitments².