NPC welcomes energy firms’ multi-million pay-out for force fitting prepayment meters
- National Pensioners Convention
- 2 days ago
- 2 min read
Eight energy providers are to pay £74million in compensation, financial support and debt-write-offs for force fitting prepayment meters (PPMs) in the homes of thousands of older and vulnerable people.
Following an investigation, Ofgem the energy industry regulator announced the companies ‘did not follow the rules when installing PPMs to collect debt without household permission.’
The eight suppliers* have already distributed £55m in financial support, with another £5.6m to be paid in compensation to 40,000 affected customers, who could receive automatic payments starting at £40, and rising to £250 or £500 depending on their cases. A further £13m will be used to write off customer debt.
However, enforcement investigations are continuing for British Gas, Utilita and Ovo, representing tens of thousands more customers.
Now Chancellor must help by reinstating WFPs in June!
Jan Shortt, General Secretary, National Pensioners Convention said: “NPC has campaigned against the scandalous force-fitting of PPMs since we first heard about it two years ago.
“Many households were forced onto PPMs at a time when energy was at a premium and they were clearly struggling with bills.
“It is commendable that *Scottish Power, EDF, E.ON, Octopus, Utility Warehouse, Good Energy, Tru Energy and Ecotricity have already compensated some 40,000 customers.
However, we await the outcome of the ongoing investigations into the behaviour of British Gas, Utilita and Ovo. Actions like these cannot be accepted at a time when everyone is struggling with the cost of living and increases in energy prices.”
Since Ofgem launched their investigation into force fitting of PPMs, the government has added to the energy bill burden of many older people by cutting the universal Winter Fuel Payments.
Jan commented: “We were pleased to hear the Prime Minister say he was reconsidering these devastating cuts. There is a golden opportunity for his Chancellor in her Spring Financial Statement on 11th June to say exactly what older people can expect. Waiting until the Autumn Budget is not only disrespectful it prolongs the worry and financial burden upon older and vulnerable people at the start of another winter.”
Jan added that the government also needs to seriously take on board the need for sustainable, renewable and affordable energy sources rather than continue to support fossil fuel as a way of providing energy.
In 2023 Ofgem asked energy suppliers to pause installing prepayment meters without a household’s permission after news stories surrounding forced-installations. Ofgem has now given energy suppliers guidelines they must follow when paying compensation to bill payers who had a prepayment meter installed without permission during the assessment period 1 January to 31 January 2023.
A new code of practice is also now in place with stricter conditions that companies must meet if they want to install prepayment meters without customer consent.
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