Energy firms forcibly installed more than 94,000 prepayment meters in homes across Britain without customer consent last year, Government figures show. Companies used court orders to force costly prepayment meters in 7,500 homes every month in 2022.
Three providers – British Gas, Scottish Power, and Ovo Energy – made up 70 per cent of the 66,187 devices fitted under warrant, according to data from the Department of Business, Energy and Industrial Strategy.
Prepayment meters are pay-as-you-go devices that require top-up payments to provide gas and electricity to a household. If payments are not made, no power is supplied.
The practice of forced installation was halted after it emerged that debt agents acting for British Gas had broken into vulnerable people’s homes to force-fit meters.
The energy regulator, Ofgem, began an investigation and now says it is extending the ban on forced installations, which had been due to expire on Friday.
It says all forced installations will be suspended until energy companies sign up to and comply with its new code of practice.
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Grant Shapps, Energy Secretary, said the figures were “horrifying”.
However, he didn’t back a blanket ban on prepayment meters.
He added: “Prepayment meters are right for some people. I do not want to ban them outright, but I do have concerns that companies have not been treating customers fairly.”
Scottish Power was the worst offender taking into account its customer base, fitting more than 24,300 meters, followed by Ovo Energy with 16,867. Behind them was E.ON with 10,220, EDF with 7,240 and Shell with 4,145.
Utilita fitted 2,559, Bulb 2,091, followed by Utility Warehouse with 1,489, Tru Energy with 101, Ecotricity with 79, Good Energy with 58 and Octopus with 32.
BEIS said the suppliers’ data was received in January and February and was based on their best estimates at that time.
Centrica, which owns British Gas, said recently the firm installed 20,469 prepayment meters under warrant in 2022.
Its boss, Chris O’Shea, was heavily criticised last week after it was reported he will receive a pay package worth almost £4.5million for 2022.
Last month, one of the country’s most senior judges told courts in England and Wales to stop processing the warrants immediately.
And Ofgem has told companies to revisit their past cases and offer redress, such as compensation, where the meters were wrongly installed and regulations not followed.
An Ofgem spokesperson said it was “reviewing all the rules, regulations and guidelines in order to strengthen consumer protection”.
Scottish Power said yesterday: “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.”
All those energy firms mentioned were contacted for comment.
