Latest news with #vulnerableCustomers
Daily Mail
28-05-2025
- Business
- Daily Mail
Tens of thousands to get £1,000 each as energy firms pay out £70m in prepayment meters scandal - here's how to find out if you are eligible
Tens of thousands of Brits are set to receive payouts of up to £1,000 each after they were forced to install prepayment energy meters at home. Energy firms are paying out more than £70million in compensation and financial support after watchdog Ofgem found they were forcibly switching customers to paying upfront after they fell behind on their bills. In some cases, the regulator found this was being done without the consent of customers - sometimes by switching their smart meters to prepay tariffs remotely - and particularly affected vulnerable customers. The practice was exemplified at its worst by agents acting on behalf of British Gas, who were observed using court warrants to demand entry into the homes of indebted customers in order to force them onto prepayment meters. Revelations of the practice, detailed in a newspaper investigation in early 2023, sparked outrage and led to the practice being suspended. However, some firms have been given permission to resume force-fitting of meters. Eight firms are paying out a total of £74million in both compensatory payouts and debt write-offs: Scottish Power EDF Octopus Utility Warehouse Good Energy Tru Energy Ecotricity More than £70million of compensation is being paid out to energy customers who were forcibly switched to pre-paid meters Of that, £55m has already been paid out, with £5.6million of compensation and £13million of debt support still to come. Investigations are continuing into British Gas, Utilita and Ovo Energy, Ofgem said. The forced installation of prepayment meters came to light at the peak of the cost of living crisis, when Russia's invasion of Ukraine forced up energy prices. Are you entitled to compensation? Ofgem advises that if you believe you had a prepayment meter forcibly installed, or had your smart meter switched to a prepayment tariff, you should receive compenstation. To make a claim, you should contact your energy supplier directly, explain the circumstances, and make a formal complaint. For help with complaints, you can contact bodies such as Citizens Advice and Advice Direct Scotland, who may refer you onto additional agencies such as the Extra Help Unit and the Energy Ombudsman. An estimated 5.5million people fell behind on their energy bills in mid-2023, according to the Money Advice Trust, which saw many switched to prepaid energy meters. Some were even switched remotely via their smart meters - a practice that, according to the parliamentary Public Accounts Committee, may have put people off from making the switch from a traditional meter. After the Times investigation into British Gas exposed the forced installation of prepayment meters, Ofcom halted the practice pending an investigation. It found suppliers 'fell short of required standards' in how customers had been treated. Now, firms are only permitted to force the installation of prepayment meters unless a resident is over 75, or has children under the age of two, or has a terminal illness. Companies who break the rules will face enforcement action and unlimited fines. Dhara Vyas, chief executive of Energy UK, which represents energy firms, said suppliers had been working with Ofgem to ensure they stuck to the rules - but insisted there were occasions where forced fittings were justified. She told the BBC: '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 is paid by all customers.'
The Independent
12-05-2025
- Business
- The Independent
Energy firms paid out £152 million to vulnerable customers over past six years
Energy firms have paid out £152 million to vulnerable customers over the past six years after failing to meet the conditions of their licences, industry regulator Ofgem has said. Fuel vouchers and advice on how to save energy have been funded by £150 million in payments and fines paid by firms for misdemeanours such as incorrect billing, poor customer service and abuse of wholesale energy markets. The Energy Redress Scheme has been funded by money paid to Ofgem by energy companies which have breached regulations since 2018. Ofgem said the funds, that are then paid out as grants, have helped 647 projects which support vulnerable consumers, provide energy advice, and back the development of net zero policies. Ovo Energy recently paid £2 million to the scheme for failings in how the supplier handled customer complaints. A separate investigation last year into Beatrice Offshore Windfarm Limited resulted in the firm paying £33.14 million for breaching energy market rules. Ofgem said more than £55 million had been allocated to fuel voucher projects, providing help to vulnerable customers at risk of disconnection from their energy supply. Cathryn Scott, director for market oversight and enforcement at Ofgem, said: 'Protecting customers and ensuring they're treated fairly is at the heart of Ofgem's mission. 'That's why we make sure that when energy companies break the rules, they make amends by contributing to projects that make our energy system fairer and support those in need. '£152 million is a huge sum of money and has helped thousands of people all over the country struggling with bills, as well as contributing to projects that help people decarbonise and learn more about their energy consumption. 'Ofgem's enforcement function is a powerful weapon in our regulatory arsenal, evidenced by the more than £92 million in compensation to customers, redress payments and fines successfully handed out in 2024 alone. 'The latest milestone of securing £150 million in redress payments for good causes could not have happened without the thorough investigative work of our compliance and enforcement teams or the Energy Saving Trust who ensure the money is targeted to reach those in need.' The Citizens Advice Energyworks project in Brighton and Hove was recently awarded almost £528,000 by the scheme to help all city residents in fuel poverty with free and impartial energy advice. At the end of last year, research showed that more than 16,000 households in Brighton and Hove were living in fuel poverty, Ofgem said.
BBC News
09-05-2025
- Business
- BBC News
Burst main in Brent Knoll leaves residents without water
Residents of a Somerset village face having no water supply overnight due to a burst Water said the main in Brent Knoll burst at about 10:45 BST on Friday and had to be isolated for repairs to be made. The firm said it hopes to turn supplies back on "by morning", with water from tankers available at The Watchfield Inn, Highbridge in the BBC has contacted Bristol Water to ask how many properties are being affected. Temporary traffic lights have been put in place on the A38, outside Mill Batch Farm at East Brent, while work is carried out. Containers will be available at water collection site, but people can also take their own to be filled, Bristol Water said. A spokesperson said bottled water would be delivered to vulnerable customers."We're working as quickly and safely as possible to repair the burst and get everyone back into water," a spokesperson Water said residents who purchase bottled water while the supply is off can send a receipt to the firm for a refund of up to £10.
