The industry regulator, Ofgem, has requested that energy firms pause the installation of prepayment meters.
The Times reported that British Gas debt collectors installed metres in vulnerable people’s houses.
Ofgem has requested that all suppliers examine the use of court warrants to access the residences of delinquent consumers.
It stated that companies must “get their house in order.”
Jonathan Brearley, the head of the regulatory agency, stated that he had ordered a study of prepayment meters to “discover improper behavior” and that, if necessary, he would not hesitate to take “the harshest action in our capacity.”
Customers using prepayment meters must pay for their energy in advance through accounts or by adding credit to a card.
They are more expensive than direct debit but they are sometimes the only choice for those who have had difficulty paying and are in debt to a supplier.
The Times’ undercover investigation revealed that operatives working for Arvato Financial Solutions on behalf of British Gas forcibly entered the house of a single father of three to install a prepayment meter.
According to one debt agent, this is the most exciting part. I adore this passage.
Chris O’Shea, the CEO of Centrica, which owns British Gas, told, “There are no words to describe the horror I felt when I heard and read this. This is entirely inappropriate.
“The contractor we hired, Arvato, has failed us, but I am responsible for this.”
Mr. Brearley, however, stated, “It is astonishing for any supplier not to be aware of the conduct of their contractors. Especially when those contractors work with the most vulnerable members of our society.”
British Gas will not instal prepayment metres until winter is over. Arvato Financial Solutions has made no statement.
British Gas installed 20,000 warranted prepayment metres in 2013 for 1.5 million consumers. With 7.26 million clients, it is the country’s largest provider.
EDF, the second-largest UK electricity supplier, will likewise halt prepayment metre installations and review its practises.
Octopus Energy
Ovo Energy ceased its warrant activities in November, and Octopus Energy stated that it “is not installing any warrants at the moment” and had rarely done so in the past.
Ofgem stated that energy suppliers were tasked with examining their agreements with third-party contractors and “incentives that could lead to unethical behavior.”
Mr. Brearley warned that no chief executive officer of an energy company could “escape their legal and moral responsibility to protect their customers, particularly the most vulnerable.”
In the case of British Gas, Mr. Brearley stated, “We are launching a complete investigation into British Gas and will not hesitate to take the strongest measures necessary.”
The energy and climate minister, Graham Stuart, stated that British Gas should “hang their heads in shame.”
He told that he met with all energy suppliers last week to discuss how to enhance the care of vulnerable individuals. “Since there are clear rules that have not been followed.”
Mr. Stuart stated that the discovery of how certain British Gas customers had been treated was “outrageous.”
“I am angry, and so should everyone else. It contradicts all of the commitments made to me by suppliers,” he noted.
However, Caroline Flynn, former shadow energy secretary and current chair of the Committee on Fuel Poverty stated that the subject of forced installation of prepayment meters was discussed with the government last year in response to an increase towards the end of the summer.
She told, “It is quite evident that the procedures for obtaining warrants for these forced installations make it abundantly plain that they should not be carried out in families where vulnerable individuals reside, yet they have not been followed.”
While Ms. Flynn applauded the halt, she stated that it was “appropriate to review whether or not forced meter installation should occur at all.”
It felt infringing.
In 2014, Jane, who did not want us to use her last name, returned to her newly-purchased property in Poole, Dorset, to find that someone had placed a prepayment meter and left a note in the kitchen.
Jane stated that the “horrific” event occurred shortly after she lost her unborn child at 17 weeks. She claimed to be “mentally broken”
The now-46-year-old stated that she had received mail addressed to a prior occupant and returned-addressed them. Jane stated that she had a direct debit arrangement with her energy provider and had never missed a payment.
She called the company and reported that the former tenant was responsible for the arrears. According to her, a neighbor with a spare key was convinced to let the installers inside.
Jane stated her energy provider apologised, removed the prepaid metre, and reimbursed her £45.
“It seems to invade when someone enters your home in such a way. “It was terrifying,” she said. “You could tell someone had been in the house. The house was bone-chillingly cold.”
Strict regulations prohibit energy companies from putting a client in danger on a prepayment meter. However, consumers in arrears can be transferred remotely on a smart meter or physically with a warrant under specific conditions.
Before installing a prepayment meter, suppliers must have exhausted all other possibilities. And should not do so for individuals in the most vulnerable situations.
Dame Clare Moriarty, Citizen Advice’s CEO, hailed Ofgem’s announcement.
“The rotten core of debt collection practices in the energy industry has been revealed for all to see. “However, this is not an isolated incident,” Ms. Moriarty stated.
