Latest news with #prepaymentmeters
Sky News
28-05-2025
- Business
- Sky News
Tens of thousands to get compensation over forced prepayment meters
People who had prepayment meters forcibly installed in their homes are in line for compensation of up to £1,000 after energy companies signed up to pay £18.6m in debt cancellation and customer payments. The announcement follows energy regulator Ofgem's review of companies forcibly entering the homes of indebted, vulnerable customers to fit prepay meters to prevent them accruing further arrears. Thousands of people were affected and are to receive the debt write-offs and, in some cases, payments from eight providers: Scottish Power, EDF, Utility Warehouse, Good Energy, TruEnergy and Ecotricity. At least 40,000 customers are due to receive the awards following the completion of one of Ofgem's "most wide-reaching reviews", which included more than 150,000 cases where meters were forcibly and also remotely installed without the billpayers' permission. Energy providers will pay £5.6m in compensation for the involuntary installation and issues like poor record-keeping and data quality. These issues meant customers didn't get the support they needed. A further £13m of energy debt will be cancelled. 2:29 Ofgem had already provided £55m in financial support, such as hardship payments and arrears write-offs to affected consumers. There were only "limited" times - fewer than 1% of cases - when a prepayment meter was fitted under warrant when it wasn't safe or reasonably practicable to do so, the review found, during the assessment period of 1 January 2022 to 31 January 2023. Despite this, Ofgem said "one case is too many". Separate investigations into involuntary installations by British Gas, OVO and Utilita are still ongoing. "This has been one of the most detailed reviews of supplier practices in Ofgem's history," its director general of markets Tim Jarvis said. "Our review also found wider issues with the processes suppliers had in place, which is why we've put in place clearer, tougher rules to protect customers in vulnerable situations. "We know that [prepayment meters] can be an effective tool in helping customers manage their costs and debt. "However, customers must always be treated fairly and compassionately, and we are confident that the changes we have made are a significant step to ensure that happens." The forced installation practice was uncovered by The Times in February 2023. Rules around their fitting have since been enacted by Ofgem. Households have been struggling with high energy costs, which skyrocketed following Russia's invasion of Ukraine. Energy Secretary Ed Miliband said: "The government has campaigned tirelessly on this issue and are pleased to see the level of compensation increase to £18.6m, up from £420,000 under the previous government. "Consumers must come first, which is why we are reforming the energy market to stamp out bad practice and make it easier to access proper redress when things go wrong, through our comprehensive review of Ofgem. "This increased compensation package is a good start, and we will be announcing further reforms in the weeks ahead."
The Guardian
28-05-2025
- Business
- The Guardian
Thousands of Britons to receive compensation for prepayment meter force-fittings
Tens of thousands of British households that had prepayment meters force-fitted in their properties are to share more than £18.6m in compensation and debt write-offs on their energy bills. The energy regulator for Great Britain, Ofgem, found that energy companies forced prepayment meters on more than 150,000 homes that were not keeping up with their bills, in one of its most comprehensive compliance reviews. The investigation found that ScottishPower, EDF, Octopus, Utility Warehouse, Good Energy, TruEnergy and Ecotricity had fallen short of the regulator's standards when using this tactic to reclaim unpaid energy debts. The eight energy companies have committed to paying compensation and writing off energy debts for at least 40,000 consumers. However, the compensation payments do not include the customers of British Gas, Utilita or Ovo Energy, which face separate investigations by the energy regulator. Households affected by the scandal, which was first uncovered by the Times, can expect to receive payments starting at £40, rising to £250 or £500, depending on the way they were treated by their energy supplier. Payments of up to £1,000 could be paid to customers who had faced 'inappropriate installation', Ofgem said. Energy companies were found to have forced prepay meters into the homes of customers who were known to be vulnerable, including those with mental illnesses and young children, as the energy cost crisis in 2022 caused many to miss payments on their energy bills. The energy regulator was heavily criticised for failing to halt the forced meter installations, despite repeated warnings from campaign groups and MPs, until after the Times reported in early 2023 that debt agents working for British Gas had ignored signs of vulnerability to fit the meters. Ofgem allowed suppliers to restart forced meter installations less than one year later, although forced fittings in homes with young children and those over the age of 75 remain banned. Ed Miliband, the energy secretary, said: 'Justice is finally being delivered to many of the families, lots of them vulnerable, who were affected by the scandal of energy suppliers wrongly forcibly installing prepayment meters. 'Consumers must come first, which is why we are reforming the energy market to stamp out bad practice and make it easier to access proper redress when things go wrong, through our comprehensive review of Ofgem.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Tim Jarvis, a director at Ofgem, said: 'This has been one of the most detailed reviews of supplier practices in Ofgem's history looking at tens of thousands of cases. It has taken time, but our priority has been to put things right for those who weren't treated properly, and ensure we don't see bad practice repeated. 'We have made our expectations clear to suppliers on how those customers who were treated poorly should be compensated. They have, and continue to, work closely and collaboratively with us to make sure their processes are robust and that their customers are properly supported.'
The Independent
28-05-2025
- Business
- The Independent
Thousands of energy customers to receive compensation over prepayment meter force-fitting
Thousands of energy customers who were forced to have prepayment meters installed in their homes are set to receive compensation or have their debts written off, Ofgem has said. Following a review into energy companies forcing vulnerable customers onto prepayment meters, the regulator announced that eight suppliers will provide compensation and support. Scottish Power, EDF, Utility Warehouse, Good Energy, TruEnergy, and Ecotricity have all agreed to the scheme. Ofgem stated that the suppliers have committed to paying additional compensation where it is due, and in some cases, will write off some of the energy debts of customers who had a prepayment meter installed involuntarily between 1 January 2022, and 31 January 2023. The suppliers will pay £5.6 million in compensation to 40,000 customers who had a prepayment meter installed involuntarily during the assessment period, using guidelines set out by Ofgem. This would mean around £140 for each customer. Additionally, the suppliers will write off a further £13 million of debt from customers who had a prepayment meter installed involuntarily during the same period. This action is in addition to the £55 million in financial support already provided directly to affected consumers by suppliers before the review's completion, which included hardship payments and debt write-offs, the regulator added. Customers identified as having had a PPM wrongly installed or where processes were not followed adequately between January 1 2022 and January 31 2023 will be contacted by their suppliers, and do not need to take action. OVO has also confirmed it will pay compensation to customers in line with the guidelines developed by Ofgem. Tim Jarvis, director-general of markets for Ofgem, said: 'This has been one of the most detailed reviews of supplier practices in Ofgem's history, looking at tens of thousands of cases. It has taken time, but our priority has been to put things right for those who weren't treated properly, and ensure we don't see bad practice repeated. 'While the number of cases where a prepayment meter was wrongfully installed is relatively low compared to the total number of PPM customers, one case is one too many. 'Our review also found wider issues with the processes suppliers had in place, which is why we've put in place clearer, tougher rules to protect customers in vulnerable situations, and I'm pleased that from today suppliers will be applying our compensation framework for those customers affected and have also committed to further support such as debt write-off. 'We have made our expectations clear to suppliers on how those customers who were treated poorly should be compensated. They have, and continue to, work closely and collaboratively with us to make sure their processes are robust and that their customers are properly supported. 'We know that PPMs can be an effective tool in helping customers manage their costs and debt. However, customers must always be treated fairly and compassionately, and we are confident that the changes we have made are a significant step to ensure that happens.' Dhara Vyas, chief executive of Energy UK, which represents energy firms, said: 'Suppliers have worked hard to co-operate with this comprehensive review and taken further action to put things right in the cases where a prepayment meter (PPM) shouldn't have been installed – or where there was insufficient support for the customers concerned. 'Suppliers have been working closely with Ofgem to meet the requirements of its review and have signed up to the Code of Practice before they have been able to restart involuntary installations of PPMs and have carried out thorough testing of the new processes. 'Involuntary installations have been a last – but necessary – resort for cases where repeated attempts to address debt with the customer through other means have been unsuccessful. It's bad for customers to fall further and further into arrears, and bad debt ultimately drives up the prices that are paid by all customers. 'Since the pause on installations, customer debt has risen to a record £4 billion, and the industry remains keen to work with Ofgem on the proposed relief scheme to tackle this problem.' The scandal first made headlines two years ago, at the peak of the cost-of-living crisis, when it came to light that energy companies were switching people on to prepayment methods. This was done by entering properties to install a smart meter or remotely changing a smart meter to prepayment mode. The energy regulator subsequently suspended all forced installations and launched a review of the process. It comes weeks after Good Energy was made to pay £150,000 in compensation and redress after it failed to give final bills and refund credit to more than 2,000 prepayment meter customers. Ofgem said 2,284 customers on prepayment meters were affected by an error with Good Energy's billing system between 2014 and October 2023. It meant that prepayment customers who switched to another supplier or ended their contract with Good Energy did not get a final bill within six weeks, as required by the watchdog. Good Energy paid out £150,067 as a result, with the average sum per customer standing at £66. Energy Secretary Ed Miliband said: 'Justice is finally being delivered to many of the families, lots of them vulnerable, who were affected by the scandal of energy suppliers wrongly forcibly installing pre-payment meters. The government has campaigned tirelessly on this issue and are pleased to see the level of compensation increase to £18.6 million, up from £420,000 under the previous government. 'Consumers must come first, which is why we are reforming the energy market to stamp out bad practice and make it easier to access proper redress when things go wrong, through our comprehensive review of Ofgem. This increased compensation package is a good start, and we will be announcing further reforms in the weeks ahead as we deliver our Plan for Change.'
The Independent
28-05-2025
- Business
- The Independent
Thousands to receive compensation over force-fitting of prepaid energy meters
Thousands of energy customers who had prepayment energy meters (PPMs) force-fitted are to receive compensation or have their debts written off, Ofgem has said. The regulator announced that eight companies will hand out compensation and support after a review into consumers struggling with energy bills who were forced to have pay-as-you-go meters installed. Scottish Power, EDF, Utility Warehouse, Good Energy, TruEnergy and Ecotricity have all agreed to the scheme. Ofgem said suppliers have committed to pay both additional compensation where it is due, and in some cases write off some energy debt of customers who had an involuntary PPM installed during the assessment period of January 1 2022 to January 31 2023. Suppliers will pay £5.6 million in compensation – using the guidelines set out by Ofgem – to 40,000 customers who had an involuntary PPM installed during the assessment period. Suppliers will also write off a further £13 million of debt from customers who had an involuntary PPM during the assessment period. This comes on top of £55 million of financial support provided directly to affected consumers by suppliers prior to the completion of the review in the form of hardship payments and debt write-off, the regulator said. Customers identified as having had a PPM wrongly installed or where processes were not followed adequately between January 1 2022 and January 31 2023 will be contacted by their suppliers, and do not need to take action. OVO has also confirmed it will pay compensation to customers in line with the guidelines developed by Ofgem. Tim Jarvis, director-general of markets for Ofgem, said: 'This has been one of the most detailed reviews of supplier practices in Ofgem's history, looking at tens of thousands of cases. It has taken time, but our priority has been to put things right for those who weren't treated properly, and ensure we don't see bad practice repeated. 'While the number of cases where a prepayment meter was wrongfully installed is relatively low compared to the total number of PPM customers, one case is one too many. 'Our review also found wider issues with the processes suppliers had in place, which is why we've put in place clearer, tougher rules to protect customers in vulnerable situations, and I'm pleased that from today suppliers will be applying our compensation framework for those customers affected and have also committed to further support such as debt write-off. 'We have made our expectations clear to suppliers on how those customers who were treated poorly should be compensated. They have, and continue to, work closely and collaboratively with us to make sure their processes are robust and that their customers are properly supported. 'We know that PPMs can be an effective tool in helping customers manage their costs and debt. However, customers must always be treated fairly and compassionately, and we are confident that the changes we have made are a significant step to ensure that happens.' Dhara Vyas, chief executive of Energy UK, which represents energy firms, said: 'Suppliers have worked hard to co-operate with this comprehensive review and taken further action to put things right in the cases where a prepayment meter (PPM) shouldn't have been installed – or where there was insufficient support for the customers concerned. 'Suppliers have been working closely with Ofgem to meet the requirements of its review and have signed up to the Code of Practice before they have been able to restart involuntary installations of PPMs and have carried out thorough testing of the new processes. 'Involuntary installations have been a last – but necessary – resort for cases where repeated attempts to address debt with the customer through other means have been unsuccessful. It's bad for customers to fall further and further into arrears, and bad debt ultimately drives up the prices that are paid by all customers. 'Since the pause on installations, customer debt has risen to a record £4 billion, and the industry remains keen to work with Ofgem on the proposed relief scheme to tackle this problem.' The scandal first made headlines two years ago, at the peak of the cost-of-living crisis, when it came to light that energy companies were switching people on to prepayment methods. This was done by entering properties to install a smart meter or remotely changing a smart meter to prepayment mode. The energy regulator subsequently suspended all forced installations and launched a review of the process. It comes weeks after Good Energy was made to pay £150,000 in compensation and redress after it failed to give final bills and refund credit to more than 2,000 prepayment meter customers. Ofgem said 2,284 customers on prepayment meters were affected by an error with Good Energy's billing system between 2014 and October 2023. It meant that prepayment customers who switched to another supplier or ended their contract with Good Energy did not get a final bill within six weeks, as required by the watchdog. Good Energy paid out £150,067 as a result, with the average sum per customer standing at £66.
The Sun
28-05-2025
- Business
- The Sun
Major energy suppliers hand out £1,000s in compensation over energy meter scandal
MAJOR energy suppliers will hand out £1000,'s in compensation. Tens of thousands of customers are set to receive thousands and see debts written off in response to the scandal over the force fitting of prepayment meters. It follows a review by the energy regulator Ofgem.
