Energy companies agree to stop force-fitting prepayment meters in vulnerable customers' homes

All energy companies have said they will stop force-fitting prepayment meters in the homes of vulnerable customers, according to the government, and magistrates have temporarily stopped signing off warrant applications¹. The pause on forced installations will continue until energy regulator Ofgem announces new rules, for which no date has been given¹.

The figures behind the practice were rising before the halt. More than 65,000 prepayment meters were installed into homes under warrant in 2021, and this rose above 94,000 in 2022, according to government figures¹. British Gas, Ovo Energy and Scottish Power installed 70% of those prepayment meters under warrant between them¹. Separately, more than 25,000 smart meters were switched from credit to prepayment between April and June 2022¹.

Ofgem's chief executive, Jonathan Brearley, said the ban would lift "only when and if" firms follow the new code of practice¹. He also said:

Existing rules set out what suppliers must do before moving a household onto prepayment for debt. A supplier must offer a range of payment methods, including a payment plan, paying directly from benefits, or a prepayment meter, and must give 28 days to pay after arrears build up¹. It can only force a prepayment meter as a "last resort to avoid disconnecting your supply"¹. Notice periods are seven days for gas meters and seven working days for electricity meters¹. A court warrant is needed to fit a physical meter covering energy use and debt repayments, and the cost of applying for one, which can be up to £150, may be passed on, though not where the customer is in a very vulnerable situation¹.

Remote switching of smart meters follows the same rules as changing a physical meter, according to Ofgem, and suppliers must carry out "appropriate assessments, including identifying any vulnerability" before switching a smart meter to prepayment for debt collection¹. At least seven working days' notice must be given, but no magistrate's warrant is required because the supplier does not need to enter the home¹. Companies have been told to check recent forced and remotely switched prepayment customers and to consider removing the meter, reversing the switch, or paying compensation where rules were broken¹.

Why it matters for households

The halt applies to vulnerable customers, so households in that group should not face a forced physical installation while it lasts, and warrant applications are not being approved in the meantime¹. The change does not remove prepayment as a payment method: suppliers can still move customers onto it through the routes set out in the rules, and smart meters can be switched remotely without a warrant¹. Households already moved onto prepayment, whether by force or remotely, are covered by Ofgem's instruction to suppliers to review recent cases and to consider reversals and compensation where rules were not followed¹. Anyone charged for a warrant while in a very vulnerable situation should not have been, under the rules¹.

What happens next

The pause lasts until Ofgem publishes new rules, and no date for that has been reported¹. Ofgem is investigating all suppliers' practices for forcing customers onto prepayment¹. It is also asking people who have been switched to prepayment meters to report their experiences through an online form hosted by Citizens Advice, open until 4 May 2023, or by calling 0800 464 3374¹.