Britain’s energy suppliers face stricter rules on forcibly installing prepayment meters in consumers’ homes after a political backlash over the practice earlier this year.
(Bloomberg) — Britain’s energy suppliers face stricter rules on forcibly installing prepayment meters in consumers’ homes after a political backlash over the practice earlier this year.
Companies are now banned from using the machines, which require payments for energy in advance, in households of severely ill people or those aged above 85 if there is no other support in the house, according to a new code of practice published by UK energy regulator Ofgem.
Energy firms also have to contact a customer at least ten times before forcing prepayment meters, and their workers must wear audio recorders or body cameras on site for potential audits. All cases should be re-assessed once a customer has repaid debts, Ofgem said.
The move comes after a scandal earlier this year with allegations that agents of Centrica’s British Gas — the UK’s biggest household energy supplier — forcibly installed prepayment meters in homes occupied by vulnerable people, struggling to pay their bills. Back then, Ofgem ordered all suppliers to suspend the practice until it has new guidelines for them.
The new rules may not solve the controversy around prepayment meters, with fuel poverty activists demanding to ban the practice of forceful installments altogether for vulnerable customers amid rising energy bills and a severe cost-of-living crisis in Britain.
Overall, about 4.5 million households nationwide use prepayment meters, designed to help users avoid racking up bills they can’t afford.
Ofgem said it expects the overall number of involuntary installations to “fall over time,” while it will continue its work with the government and industry on further solutions to the problem. It added that if meters are installed, they must come with a £30 credit to avoid the immediate loss of power or heating.
“This Code, whilst an important next step, is not the end of the journey,” Chief Executive Officer Jonathan Brearley said in a statement Tuesday.
One possible consequence of installing fewer prepayment meters is that consumer energy debts could mount, according to Dhara Vyas, deputy head of Energy UK, an industry lobby group, adding such a trend “will need to be addressed.”
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