Energy companies have been cautioned to begin compensating customers whose homes were improperly installed with a prepayment metre without awaiting the results of a comprehensive review. Jonathan Brearley, chief executive officer of Ofgem, stated that businesses must immediately review their own metre installations.
The review will incorporate public submissions, and information on how customers can share their experiences will be forthcoming. If the customer desires, companies that improperly installed a prepayment metre should switch the metre back to a standard one and provide compensation.
The investigation will also focus on the actions of British Gas to determine whether the company complied with the terms of its licence regarding the support of indebted customers prior to the installation of prepayment metres. According to The Times, British Gas debt agents are enthusiastic about installing prepayment metres in the homes of vulnerable people who have fallen behind on their bills.
Customers with prepayment metres add credit to their metre, which depletes as they use energy at home. According to charities and advocacy groups, soaring energy prices and other cost-of-living pressures have left many unable to afford to put money in their metres.
Energy UK, the trade association for suppliers, has emphasised that customers who do not pay their regular bills can leave suppliers with unpaid debts. Without the option of installing prepayment metres, these accumulating debts would have to be recouped from the bills of everyone else.
Last March, 29-year-old Caroline Pugh purchased a home in Seaton Carew, near Hartlepool, as an illustration of this injustice. In August, while Caroline was residing elsewhere, her residence was broken into, the locks were changed, and two prepayment metres were installed without her knowledge. Scottish Power stated that the metres were installed due to the previous owner’s debt. She was informed that she would be charged hundreds of pounds to switch them back, so she had no choice but to keep them.
In April, residential energy costs are expected to rise, but the government is under pressure to extend assistance to households. According to analysts at the consulting firm Cornwall Insight, falling prices later in the year could result in the “return of competitive tariffs.” However, Jonathan Brearley urged individuals to exercise caution when deciding whether to sign up for new fixed deals during the summer and to do their research on how prices may change in the future prior to making a final decision.
Ofgem has warned energy companies that customers who were improperly fitted with prepayment metres must be compensated without waiting for the results of a comprehensive review of the rules, regulations, and guidance governing these metres. The review, which will be concluded by the end of March, will incorporate public comments. It will also conduct a targeted investigation into British Gas’s actions, focusing on whether the company complied with the terms of its licence by providing debt relief to customers prior to installing prepayment metres.
Numerous households are unable to put money into their metres due to soaring energy costs and other cost-of-living pressures, according to charities and activists. Energy UK asserts that suppliers may be left with unpaid debts from customers who do not pay their regular bills and must have the option of moving people to prepayment metres in order to recover these debts from the bills of other customers. Regarding energy bills, Caroline Pugh’s experience is just one example of how unfairly people are treated.
In April, residential energy costs are expected to rise, but the government is under pressure to extend assistance to households. Jonathan Brearley has urged individuals to exercise caution when deciding whether to sign up for new fixed deals in the summer, and to do their research on how prices may fluctuate in the future prior to making a choice.
Ofgem has warned energy companies to begin compensating customers whose homes were improperly installed with a prepayment metre without waiting for the results of a comprehensive review of these metres. The regulator is currently outlining the scope of its review of the rules, regulations, and guidance pertaining to prepayment metres, which will be concluded by the end of March and include public input. Additionally, an independent investigation will be conducted into British Gas’s actions regarding the forced installation of prepayment metres. Due to the impending increase in domestic energy bills in April, consumers are urged to exercise caution when deciding whether to sign up for new fixed deals in the summer, and to do their research on how prices may change in the future prior to making a decision.
