Business secretary calls for an end to forced prepayment meter switches

He’s asking suppliers to voluntarily commit to stopping this practice and demanding they share the number of warrants they’ve applied for in recent months. He also wants to see much greater efforts from suppliers to help consumers in payment difficulties before forcing a switch to prepayment meters – such as offers of additional credit, debt forgiveness or tools such as debt advice. 

In his letter, Shapps has asked suppliers to discuss possible further action they can take to support customers and avoid forced fitting.  

It follows reports that the number of customers switched to prepayment meters has soared in recent months, and in many cases unwillingly and without offer of support, leading in some instances to vulnerable customers having their gas and electricity supplies cut off with little or no notice.  

Shapps said: “Suppliers are clearly jumping the gun and moving at risk customers onto prepayment meters before offering them the support they are entitled to – I simply cannot believe that every possible alternative has been exhausted in all these cases. 

“I am deeply concerned to see reports of customers being switched to prepayment meters against their will, with some disconnected from supply - and quite literally left in the dark. 

“Rather than immediately reaching for a new way to extract money out of customers, I want suppliers to stop this practice and lend a more sympathetic ear, offering the kind of forbearance and support that a vulnerable customer struggling to pay should be able to expect.”

 
Today (23 January) Ofgem chief executive Jonathan Brearley delivered a speech voicing his concern about the rise in households being switched to prepayment meters, also announcing the regulator will launch an industry-wide review into the practice.

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