Powered by MoneyNerd, featured in...

Prepayment meter hell!

Avatar photo
By
Janine
Avatar photo

Janine Marsh

Financial Expert

My name’s Janine, and I’m a mum of two who’s always been passionate about trying to cut down spending costs. I am now sharing as much financial knowledge as I possibly can to help your money go that little bit further.

Learn more about Janine
· Jan 17th, 2024

Why homeowners are getting forced onto prepayment meters

Last year, single mothers and pensioners found themselves cornered, forced to make an unthinkable choice between putting food on the table or keeping their homes warm. 

Ofgem, the energy regulator, responded to this distressing scenario by imposing a ban on the installation of prepayment meters following an investigation by the Telegraph. Debt collectors were breaching the rules and forcing prepayment meters on vulnerable people.

Shockingly, teams enforcing warrants for British Gas discovered distressing situations, including a 77-year-old man and a 25-year-old single mother with four children, the youngest being a newborn baby. These tenants, struggling with soaring energy bills, faced the intrusive imposition of prepayment meters.

Ofgem have lifted the ban.

The ban on the forced installation of prepayment meters, instituted early last year, came to an end on the 8th of January 2024, allowing EDF, Octopus, and Scottish Power to resume this controversial practice. 

The lifting of the ban raises concerns about potential legal battles for customers of EDF, Scottish Power, and Octopus. In the worst-case scenario, individuals may find themselves facing forced entry into their homes for the installation of prepayment meters. 

Experts’ concerns.

Simon Francis from the End Fuel Poverty Coalition expresses his dismay, emphasising the questionable timing of Ofgem’s decision amid winter, when energy needs are critical, and debts are on the rise.

This alarming development not only exacerbates financial burdens but also poses a threat to the well-being of vulnerable populations, including the elderly and children.

The implications for health are significant, as the NHS advises keeping young people away from mold, and individuals reliant on energy for medical needs may find themselves housebound. The new Ofgem rules no longer offer protection to these vulnerable groups, leaving them exposed to potential harm.

Your next move if you have a prepayment meter wrongly installed.

If you suspect a wrongful meter installation, reporting the issue to Ofgem is crucial. Ofgem has vowed heavy fines for energy companies found in breach of their licence conditions. Expert Simon Francis says it should not be fitted if you’re over 75, have young children under the age of 2 or you’re in the vulnerable category.

Amidst the ongoing cost-of-living crisis, if energy bills have spiralled into daunting amounts, don’t panic. Communication is key – reaching out to the energy supplier can lead to solutions like devising a new payment plan. Always pick up the phone is you believe your bill if wrong.

Did you like this article?
Show your support ❤️
We're glad you liked the article! As a small team, your support means everything to us. If you could rate us on Google, it would be amazing. Thank you!
We are so sorry...

Is there something missing? We’re all ears and eager to improve. Send us a message and let us know how we can make our article more useful for you.

You can email us directly at [email protected] to share your feedback.

The authors
Avatar photo
Author
My name’s Janine, and I’m a mum of two who’s always been passionate about trying to cut down spending costs. I am now sharing as much financial knowledge as I possibly can to help your money go that little bit further.