Thousands more people to be compensated after forceful prepayment meter fittings - £200,000 to be paid out
Only 1,502 customers have received compensation so far after being wrongly put onto prepayment meters
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Ofgem has announced that they are planning more payments totalling around £200,000 to 1,000 more customers who have been affected by the involuntary installation of prepayment meters last year.
In an attempt to prevent the wrongful installations, Ofgem have assessed 150,000 involuntary prepayment fittings so far.
Their research from energy suppliers found that 1,502 customers have received compensation so far, totalling £342,450.
The amount of compensation customers receive is based on their individual circumstances and the harm they experienced from their supplier.
Suppliers are planning more payments of around £200,000 to 1,000 more customers.
Last year, Ofgem announced a market compliance review (MCR) of customers who had had a prepayment meter installed without their permission between January 1, 2022, and 31 January 2023.
Suppliers are planning more payments of around £200,000 for 1,000 more customers
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The review comes after agents from British Gas were exposed to have been installing prepayment meters inappropriately. British Gas is subject to a separate investigation, and not included in the aforementioned figures.
British Gas is not included in the Market Compliance Review nor the figures above, as it is subject to a separate investigation, Ofgem said.
The shadow energy secretary, Ed Miliband, said: “A year after the government promised full compensation for those facing the scandal of forced prepayment meter installations, which saw widespread self-disconnection and vulnerable people left without heating during the cold winter months, they have utterly failed to carry through on their promise.
“It is appalling that so few people have been given compensation, that suppliers were allowed to mark their own homework and to decide what redress to offer.
“This is a government that allowed the prepayment meter scandal to occur under its noses and has now added insult to injury by failing consumers once again.
“This is a government that simply cannot be trusted to stand up for the British people.”
Ofgem said energy suppliers had also compensated customers in various ways, including by adding credit to customers’ accounts and writing off debt.
An Ofgem spokeswoman said: "We are working closely with suppliers to make sure they identify all eligible consumers and pay appropriate levels of compensation promptly.”
The energy watchdog will publish another review by the end of June 2024.
The update will include figures on the number of customers who have had compensation, the amount paid and Ofgem’s “ongoing work with suppliers, consumer groups and the Ombudsman to identify affected customers”.
Ofgem announced that Scottish Power, EDF and Octopus can now install prepayment meters to get back debt owed to them without a household’s permission.
They have stated the option to install a prepayment meter in households should only be considered if other ways to support customers, such as an agreement to a repayment plan to help manage debt have not worked out.
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Those struggling to pay their energy bill or think they will struggle should contact their energy supplier as soon possible to get support.
How to claim compensation
Customers who think they had a prepayment meter installed involuntarily may be entitled to compensation.
They should contact their supplier, explain their circumstances, and make a complaint.
For help making a complaint, consumers can contact Citizens Advice and Advice Direct Scotland.
If customers need extra support, the complaint may be referred to Extra Help Unit and Energy Ombudsman.
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