Energy firms stop fitting pre-payment meters by force after Ofgem slams ‘unacceptable’ practices

Big energy firms have stopped fitting pre-payment meters by force after regulator Ofgem stepped in.

Energy providers have come under fire for switching standard energy meters to pre-payment versions during winter and a cost of living crisis. Smart meters can be switched over remotely, but non-smart meters are physically removed and replaced. 

Energy companies do this if a customer has failed to pay their bills, but not only is pre-payment electricity and gas more expensive, if these meters are not topped up then customers are left without power.

Last weekend the Times reported that vulnerable British Gas customers had had their homes broken into by contractors working for the energy firm.

In response, Ofgem said the practice was ‘unacceptable’, and British Gas has now said it will stop forcibly fitting the meters over the winter. 

Energy bills are higher with pre-payment meters because they cost energy firms more to run

An Ofgem spokesperson said: ‘It is unacceptable for any supplier to impose forced installations on vulnerable customers struggling to pay their bills before all other options have been exhausted and without carrying out thorough checks to ensure it is safe and practicable to do so.’

The Ofgem crackdown has led major UK energy companies to halt the practice.

Aside from British Gas, the largest UK consumer energy firms are Eon, EDF, Ovo and Scottish Power. Eon, EDF and Scottish Power have all now agreed not to fit pre-payment meters by force until the end of the winter.

In practice, this means the energy firms have agreed to pause going to court to get the warrants needed to enter properties to fit pre-payment meters. Ovo stopped doing this in November, This Is Money understands.

Some consumers with pre-payment meters have also been charged £150 for court costs related to having their house broken into by an energy firm.

Consumer champion Helen Dewdney, who runs the website The Complaining Cow, said: ‘Ofgem needs to ensure that these charges and any associated with them are immediately refunded to these customers’ accounts and that they are put back onto credit billing, if wanted.’

Concerns: Energy firms can forcibly fit a pre-payment meter if a customer has failed to pay their bills – but Ofgem has said this risks leaving vulnerable people without power

What the energy firms say 

Chris O’Shea, chief executive of British Gas owner Centrica, said: ‘Having recently reviewed our internal processes to support our prepayment customers as well as creating a new £10 million fund to support those prepayment customers who need help the most, I am extremely disappointed that this has occurred. 

‘As a result, on Wednesday morning (February 1), we took a further decision to suspend all our prepayment warrant activity at least until the end of the winter.’

An Eon spokesperson said: ‘We have suspended the fitting of pre-payment meters under warrant as well as remote switching of smart meters to a pay-as-you-go function unless by customer request. This is until the end of the winter.’

A spokesperson for EDF said the firm had ‘suspended forced installation of prepayment meters’ while it carried out a review of its processes.

A ScottishPower spokesperson said: ‘Affordability is a major concern for customers and our processes are tailored to take account of customer vulnerabilities and circumstances. 

‘We would not switch a customer to prepayment without advanced notice and installing a prepayment meter is always a last resort, only after we have exhausted all other options to speak to and work with customers on debt repayment.

‘We deplore the behaviours reported and have suspended all warrant installations while a thorough investigation takes place.’