Ofgem and Citizens Advice have jointly launched a national evidence-call asking energy customers to share their experiences of transitioning to a prepayment meter.
Forced prepayment installation allegations had been raised by energy security secretary Grant Shapps earlier this year in which he called for an investigation into the issue.
This national evidence-call will aid this investigation, alongside Ofgem’s Market Compliance Review, which launched in January, to enable the energy regulator to take action against suppliers that have fallen short of expected standards.
The eight-week partnership is calling for the experiences of customers that either have had prepayment meters installed to recover unpaid bills or those that actively choose to use pay-as-you-go to manage their budgets. The feedback will inform the investigation into British Gas’s potential breaches of licence due to forced prepayment meter installations.
Ofgem recently called on suppliers to use a pause to rectify some of the wrongly installed meters in vulnerable customers’ homes. The regulator also called for compensation to be awarded from any wrongdoing.
People can submit their experiences through an online form which is being hosted on Citizens Advice’s website and is open until 4 May 2023.
“We must work hand-in-glove with consumer groups to analyse and act on customer’s experiences, not only what suppliers tell us. We need customers to give us frank and candid feedback about their experience of being moved to prepayment meters – good or bad,” said Ofgem CEO Jonathan Brearley.
“Households are facing unprecedented rises in energy bills, forcing many into energy debt and putting them at risk of being forced onto PPMs. That’s why Ofgem has set up a detailed market review into PPMs to examine if suppliers are complying with their licence obligations and where needed to toughen up protection for all vulnerable customers.
“Our rules are clear that installing forced PPMs must be a last resort where all other options have been exhausted. We won’t hesitate to take tough enforcement action if we find suppliers have not followed the rules.”
Prepayment meter installations had risen considerably amid the energy crisis with many of these allegedly forced – a last resort option for energy suppliers. Due to soaring energy prices, many on prepayment meters have been unable to pay for energy and thus had their supply cut off. Citizens Advice indicated that around 3.2 million had been affected in 2022.
“Force-fitting prepayment meters can have devastating consequences, as our report on the issue made clear earlier this year. We’re working with Ofgem to make sure people’s experiences are heard. Through sharing their experiences, people can help expose wrongdoing and help the regulator develop new protections so this never happens again,” said Dame Clare Moriarty, chief executive of Citizens Advice.
