A MAJOR change to rules for energy customers struggling with bills has been announced – including £30 free credit.
The most vulnerable energy customers will no longer be forced on to prepayment if they fall in to debt, energy regulator Ofgem has confirmed.
Energy suppliers gave agreed to a ban on forcibly installing prepayment meters
This includes in the homes of people over 85 and those who need a continuous supply for health reasons, including dependence on powered medical equipment.
Customers who are moved on to prepay to manage their debts will be handed £30 free credit so they are not left without gas or electric when being switched over.
All UK household energy suppliers have signed up to the new code of practice.
PPMs have been in the spotlight after some energy suppliers were caught breaking into the homes of people struggling to pay their bills to forcibly install them.
The new rules mean tougher oversight of PPMs which are enforced under warrant installations or remotely switched without consent.
Warrants give energy firms the legal right to enter homes and install the meters.
This usually happens if a customer is in debt with their energy bill and the supplier has been unable to contact them for a prolonged period of time.
Under the new rules suppliers, will now have to make at least ten attempts to contact a customer.
Firms have also been told to identify where meters were wrongfully installed and to return the customer to their previous tariff and offer compensation.
Forced installations will also be considered a last resort, the code set out.
Energy suppliers can also switch customer smart meters over to these costlier payment methods at the click of a button.
They can do this to help recover a debt if a customer can no longer afford their bills.
Sun Money called for a ban on moving households onto prepayment meters back in August last year.
We spoke to Ann Ashby, 64, who was distraught when British Gas installed a prepayment meter without her consent
Jonathan Brearley, chief executive of Ofgem, said: “We expect the overall number of involuntary PPM installations will fall over time, and we recognise that a careful balance is required to help manage debt, while protecting customers in vulnerable situations.”
An investigation by The Times revealed how vulnerable customers – including disabled and mentally ill people – were being forced by British Gas on to the pay-as-you-go meters or having their gas switched off.
Firms were temporarily banned from installing prepayment energy meters under warrant.
Dame Clare Moriarty, chief executive of Citizens Advice, said the code of practice is a “much needed improvement”.
“It’s now up to suppliers to follow the rules and for Ofgem to crack down quickly on any sign of bad practice,” she added.
What prepayment meter help is on offer?
If you’re on a prepayment meter, you might be able to get a one-off voucher to top up.
The fuel voucher scheme comes via the Fuel Bank Foundation charity, and it’s offered through a range of organisations, like food banks and Citizens Advice.
The best place to start is to find somewhere which can offer you a fuel voucher by asking your local council – you can find yours via gov.uk by searching your postcode.
The voucher should help you cover around two weeks’ worth of electricity use.
Some energy companies may also issue their own vouchers, so ask your supplier directly.
Energy companies usually offer emergency credit, though you will have to pay this back.
How much you get and how it’s applied will depend on who your supplier is.
It might be added to your meter when you fall below a certain amount or you might have to ask for it.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
