A BBC expert has shed light on the circumstances under which energy prepayment meters can be installed without customer consent, highlighting important protections introduced by Ofgem in response to past abuses.
Three years ago, a scandal erupted when multiple energy suppliers were found installing prepayment meters forcibly in customers’ homes without their knowledge or approval. This led to a crackdown by Ofgem, the energy regulator, which introduced stricter regulations to prevent such practices.
Despite these tighter rules, energy companies can still install prepayment meters without permission in certain cases, mainly when customers have outstanding energy debt. However, there are five protected groups of people who cannot have these meters forcibly fitted under any circumstances.
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BBC Your Voice correspondent Colletta Smith explained on Morning Live on May 20 that energy firms must follow a rigorous process before installing prepayment meters. She said, “British Gas and their debt collection agents were forcing entry into people’s homes without their knowledge and installing prepayment meters while they were out.”
Since the scandal came to light, Ofgem has introduced “much tighter protections.” However, Smith noted, “The practice has not been banned entirely.” When asked if forced prepayment meter installations could still happen, she confirmed they can, but only with strong safeguards.
The five groups protected from forced installations include vulnerable households such as those with young children, disabled occupants, and others with specific criteria. Smith reassured, “If you fit into any of those categories, a prepayment meter can never be installed at your home against your will.”
For consumers not in these protected groups, energy suppliers face greater hurdles than ever before. They must first secure a court warrant to enter a property and make at least 10 attempts to contact the household by phone, email, and letter. This is followed by a welfare visit, during which agents are required to wear audio and body cameras to verify the occupant’s status.
Smith pointed out that some people may not inform their energy supplier of changes in their circumstances, such as having a newborn, which could affect their eligibility for protections.
If a prepayment meter is forcibly installed, customers are entitled to compensation in the form of a £30 credit or an equivalent period in which their supply cannot be disconnected.
Energy firms tend to consider switching customers to prepayment meters when they struggle with unpaid energy bills. Ofgem’s guidelines clearly state that forced installation should only be a last resort to recover debt.
The controversy saw British Gas debt agents break into the homes of vulnerable customers to install meters, prompting a regulatory investigation. In 2023 British Gas agreed to pay £20 million into a compensation fund. CEO Chris O’Shea apologized, saying, “What happened should never have happened.”
Between 2022 and 2023, about 40,000 customers across various energy companies, including EDF, E.On, and Scottish Power, had meters installed without consent. Several firms have since offered compensation to affected consumers as part of settlements.