Energy company appeals to install prepayment metres will be stopped by English and Welsh magistrates courts.
In light of the rising concern, one of the nation’s highest-ranking judges stated that the cases must be suspended.
Ofgem has requested that all companies halt coercive installations.
Lord Justice Edis, the judge who oversees the operation of all courts, issued an order on Monday. Instructing each center to cease listing warrant applications until further notice. This effectively renders both options impractical.
Lord Justice Edis stated that all magistrates must “act appropriately and with consideration for the human rights of those impacted, in particular any vulnerable individuals.”
Stop forcing prepayment meters
A warrant officer who has sought prepayment meter warrants on behalf of energy firms for the past two decades told that he is pleased with the decision, but that it has been a significant problem for years.
“Robert,” who is not being identified because he does not want his employer to learn he has spoken with the media, says. “In 2015, we would file for a warrant in person at a local court with 20 to 30 applications”.
I would identify vulnerable instances and bring them to the notice of the magistrate, who would then deny the request. That does not exist anymore.”
After large applications, Robert said magistrates would have a new online and phone system in 2019.
“I have witnessed 200-300 applications submitted simultaneously. But I also have colleagues who have emailed spreadsheets containing thousands of addresses. Which are then processed in approximately 15 minutes,” he continues.
Lord Justice Edis stated that energy companies might still make a case for a warrant to be heard. They must first convince a judge of the “integrity of their methods, notably about the vulnerability of residents.”
Ofgem and government investigations will determine the moratorium’s duration.
Charity National Energy Action
Peter Smith, head of the strategy at the fuel poverty charity National Energy Action, stated that magistrates’ courts “rubber-stamped batches of warrants with little or no examination.”
“It is somewhat reassuring that magistrates are now cognizant of the gravity of their actions and are not oblivious to the awful consequences for vulnerable individuals if they are coerced into using prepayment meters,” he added.
This past weekend, a leak of instructions from the most senior magistrate in England and Wales revealed that courts were being informed that challenges to energy firms’ mass demands for such warrants were “irrational” and that questions previously posed are “now disproportionate.”
The essence of the matter is that energy suppliers’ “under oath” promises, particularly that none of the listed clients were vulnerable, were accepted in good faith.
However, charity activists assert that the energy firms’ systems do not accurately identify vulnerable consumers. Including the elderly, those with young children, and those with impairments.
While today’s action should provide some consumers with respite, it does not address the underlying issue.
The installation of prepayment meters was intended to serve as an alternative to the infrequently utilized sanction of disconnection. If it is not possible, it is possible that bills will not be paid at all. All of this may eventually lead back to the government.
The Times reported last week that British Gas debt collectors broke into vulnerable people’s homes to install metres.
British Gas’s parent company Centrica
Chris O’Shea, chief executive officer of British Gas’s parent company Centrica, reacted with horror to the findings, and the company announced it would postpone installing prepayment meters until at least the end of winter.
Business Secretary Grant Shapps stated on Sunday that Ofgem had “let the wool be pulled over their eyes” about the forced installation of prepayment meters by taking corporations “at face value” instead of listening to customers.
He has given energy companies until Tuesday to report back on the actions they will take, which may include compensation. In response to complaints from customers who have had improperly installed prepayment meters.
Energy Minister Graham Stuart stated in the House of Commons that he had met with the head of Ofgem and that the government expected “strong and prompt action if suppliers fail to meet their commitments.”
However, Ed Miliband, the shadow secretary of state for climate change, stated that the response was “simply inadequate”. And accused the administration of “sitting on their hands and acting much too slowly.”
“In September and November, Ofgem conducted reviews that revealed the problem; where was the government? “At the beginning of January, Citizens Advice revealed that three million people had been illegally disconnected,” he stated.
