Tens of thousands of UK households who were forcibly switched to prepayment energy meters may be entitled to compensation, according to Money Saving Expert. This follows a period of intense scrutiny on energy suppliers' practices, particularly concerning the installation of prepayment meters without customer consent or appropriate checks for vulnerability.
The issue gained significant attention during the recent energy crisis, where soaring bills led many to struggle with payments. Energy companies, in some instances, resorted to installing prepayment meters, often through court warrants, for customers in arrears. However, investigations revealed that these installations sometimes occurred without adequate consideration for customers' individual circumstances, including health conditions, age, or the presence of young children, which should have flagged them as vulnerable.
Energy regulator Ofgem introduced a new code of practice in November 2023, making it significantly harder for suppliers to forcibly install prepayment meters. This code mandates more stringent checks and higher standards of care, especially for vulnerable individuals. Suppliers are now required to review all forced installations that occurred between January 2022 and November 2023, identifying cases where the rules were breached.
Customers who believe they were wrongly forced onto a prepayment meter are encouraged to contact their energy supplier. Compensation amounts could vary significantly, potentially ranging from hundreds to thousands of pounds, depending on the specific circumstances of the case, including any distress caused or additional costs incurred. This could include reimbursement for higher tariffs, damage to credit ratings, or the stress of being cut off from energy supply.
The move to compensate customers highlights the ongoing efforts to protect vulnerable consumers in the energy market and ensure fair practices from suppliers. It also serves as a reminder for energy companies to adhere strictly to regulatory guidelines and to prioritise customer welfare, particularly during periods of economic hardship.