13 September 2023 , 10:26
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Ofgem has announced stricter rules for energy companies and prepayment meters.
Energy suppliers are being banned from forcibly installing prepayment meters in the homes of people aged 75 and over with no support, and in households with children aged under two. The no-install rule already applies to customers aged 85 and over with no support, households where someone has a severe health issue, and homes where someone has a medical issue which requires them to have a warm home.
The regulator has confirmed the code of practice will be made mandatory. It was introduced in April after an investigation by The Times found debt agents acting on behalf of British Gas were forcing entry into the homes of vulnerable people.
The new rules come into effect on November 8 and will ensure suppliers “are acting in a fair and responsible way with involuntary installations used only as a last resort”. The practice has been temporarily suspended since February.
Neil Kenward, director for strategy at Ofgem, said: “Protecting the most vulnerable consumers is at the heart of what we do and this decision not only cements the protections Ofgem put in place for people deemed most at risk, it goes further to protect the most vulnerable households. Prepayment meters are an important payment method that help millions of households to manage their energy bills. But they are not suitable for everyone.
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“Today’s enhanced rules are there to provide protection from bad practice while ensuring that when needed, and as a matter of last resort, suppliers are using involuntary installations in a fair and responsible way. Ofgem will be monitoring suppliers’ behaviour closely to ensure they are complying with the spirit and letter of these rules. If that is not the case, we will not hesitate to take action.”
It comes as the Ofgem price cap is set to fall from £2,074 to £1,923 from October, for a typical dual fuel household paying by direct debit. But households will still pay more compared to last winter.
This is because there won't be the £400 energy bill discount from the Government, which was issued in £66 or £67 monthly instalments from October 2022 until March this year. Despite what its name suggests, the Ofgem price cap isn't actually a total cap on how much you can pay for energy. Instead, it puts a limit on how much you can be charged for unit rates and standing charges.