Ofgem has granted permission for a fifth energy supplier to restart involuntary installations of prepayment meters.
The energy regulator said Utility Warehouse has met its “strict” criteria, which includes carrying out internal audits to identify PPMs wrongfully installed before February 2023.
Firms also had to offer compensation and a return to a non-prepayment payment method to any affected customers under the conditions.
Ofgem announced E.On and Tru Energy were permitted to restart involuntary prepayment meter installations last week, which followed EDF, Octopus Energy and Scottish Power meeting the criteria last month.
Ofgem has granted permission for Utility Warehouse to restart involuntary installations of prepayment meters
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An Ofgem spokesperson said: “Protecting consumers is our number one priority. We’ve made clear that suppliers must exhaust all other options before considering forced installation of a prepayment meter, and consumers can help themselves by reaching out to their supplier as soon as possible if they think they won’t be able to pay their bill, so payment options can be discussed.
“Our rules on when, and how, a prepayment meter can be installed are clear and we won’t hesitate to take action if suppliers act irresponsibly.
“We will continue to work closely with consumer groups and suppliers to make sure households understand their rights when it comes to prepayment meters and will regularly review our rules to make sure they are working to protect the most vulnerable.
“We would also strongly encourage consumers to make sure their personal details and circumstances are up to date with their supplier, so they can be taken into consideration if or when payment problems arise.”
Suppliers need to provide regular monitoring data to Ofgem so the regulator can identify if there are any concerning practices.
Companies need to make at least 10 attempts to contact the customer before they can install a prepayment meter and they must also carry out a site welfare visit beforehand.
Firms can’t forcibly fit a PPM in households considered to include the “highest risk” customers, such as those who need a continuous energy supply for health reasons, have an older occupant aged 75 and over without support, or with children under two years old.
The full list of energy suppliers that can install prepayment meters without a household’s permission has been updated on Ofgem’s website.
A spokesperson for EDF said: “We have a duty to keep bills as low as possible, especially given customers are struggling, and rising debt levels are leading to all households facing bigger bills.
“It is important to restart, under strict supervision from the regulator, processes that help individual customers get out of debt and protect all customers from additional charges.
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“Smart Pay As You Go meters provide the cheapest rates, without needing to visit a shop to top-up, and enable us to provide support quickly if customers run into difficulty.”
Octopus Energy told GB News they don't have plans to restart involuntary installations and they have only ever carried out involuntary installations in "extremely rare circumstances". They said "any response at all from customers can halt" the process and they constantly check for vulnerabilities.
A ScottishPower spokesperson said: “While we have met Ofgem’s strict criteria and been authorised to restart involuntary prepayment meter installations, where appropriate, this is always a last resort. Our focus will continue to be on supporting our customers to manage their debt and avoid the need for such action.
“If any customer is struggling to pay, we would urge them to contact us or speak to a debt charity right away, so we can take their situation into account and get them the help they need. Talking to us will also allow us to determine whether a prepayment meter is appropriate for their individual circumstances or not, in line with the regulator’s strict rules and licence conditions which we have met.”
GB News has contacted Utility Warehouse asking for comment. E.ON and Tru Energy declined to comment.
