Activists who favor a complete ban have criticized stricter regulations governing the homes that can be forcibly converted to prepaid energy meters.
Customers must be given more time to pay off their obligations, and forced meter installations will no longer be permitted in residences where all residents are over 85 years old, according to Ofgem.
Charities argue that the measures are insufficient because they are voluntary, but Ofgem asserts that they will soon be required.
After agents broke into the residences of vulnerable individuals, fitting was halted.
The Times’ investigation exposing the actions of British Gas agents prompted a public outcry.
The coordinator of the End Fuel Poverty Coalition, Simon Francis, stated that the new regulations “do not go far enough.” According to Citizens Advice, they should be made mandatory immediately.
Government ministers would have to institute a complete prohibition on forcible fitting.
Energy Secretary Grant Shapps appeared to indicate that the government will act.
As he departed Downing Street, Mr. Shapps was asked if more would be done to control prepayment meters. He responded, “Yeah, we’ll be on this.”
Jonathan Brearley, chief executive officer of Ofgem, stated that the regulator must strike a balance between managing debt and preserving vulnerable customers. However, he stated that firms’ reputations were at stake if they disregarded the rules.
We cannot examine everything that suppliers do, so we cannot guarantee that no unethical business practices exist. “However, we can delve deeply into a company to determine what is going on,” he stated.
Concerns have been expressed about energy companies measuring their performance. But they must meet five conditions before they can resume forced meter installation in May. In practice, it may be months before some businesses can resume forcible installations.
Ofgem stated that it would transform the code into new mandatory regulations and would strengthen them as necessary.
Mr. Brearley stated that the new standards would be subject to “much tighter” oversight. He stated that “against their commercial interests” stricter regulations would be implemented if companies failed to comply with the requirements.
He said the regulator might request smart metre and body camera data to evaluate firms.
Forced actions
Since energy prices have risen, it has become more common to switch individuals to prepayment meters without their consent.
Suppliers say it may help indebted clients budget by warrant or remotely through smart metres.
However, activists argue that prepayment meters, which must be refilled, put vulnerable consumers at risk of running out of credit and losing access to light and heat.
All energy suppliers in England, Scotland, and Wales have signed the code of conduct governing installation methods.
Suppliers must now contact customers ten times and do a “site welfare visit” before installing a prepayment metre.
Representatives will also be required to don body cameras or audio equipment to ensure compliance with the rules.
Repaying debt may allow a consumer to revert to a post-payment metre.
However, there are concerns that the regulations will only protect those at the highest risk.
Suppliers will be required to conduct additional risk assessments for vulnerable consumers in the “medium risk” category, but they can still proceed with forced installations if they deem them to be justified.
Medium-risk individuals may include seniors between the ages of 75 and 84, parents of children younger than five, expectant women, and those with Alzheimer’s disease, among others.
“What about elderly individuals under the age of 85?” Also, some disabled persons, such as those who use electricity to charge their wheelchairs, may still be excluded. There will be uninsured individuals, according to Mr. Francis of the End Fuel Poverty Coalition.
Charity for disability equality Scope is calling for a complete ban, warning that under the current regulations, disabled households could still be forced to install meters.
Citizens Advice estimates that 600,000 people were forced to convert to prepayment meters due to difficulty paying their bills last year, up from 380,000 in 2021.
Even before the resumption of forcible meter installation, companies must ensure that meters pass tests, including an audit to identify any improperly installed meters. In addition, they must address any historical issues regarding meter installation outlined by the regulator.
Debt collectors visited David Ford’s Brighton home and fitted a prepayment metre after threatening to break in.
He stated that enhancements to the system should have been made by the regulator and government years ago.
Mr. Ford, who is disabled like his partner, said, “When this occurs, it can place you in a worse position.”
Suppliers have previously warned that unpaid customer debts will ultimately be covered by everyone else’s bill if they remain unpaid.
