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Involuntary prepayment meter installations by energy suppliers must be only be done as a last resort, under a new code of practice set by the regulator Ofgem.
Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.
The rules will also see forced instalments banned in the homes of customers over the age of 85, while those with a severe illness will also be exempt from forced switching when they’re behind on their payments.
These voluntary rules could see force-fitting meters – which were banned in February – return in May, however suppliers will need to show the regulator they’re keeping in line with the code.
Speaking on the Today programme, Ofgem chief executive Jonathan Brearley said: “We recognise that a careful balance is required to help manage debt, while protecting customers in vulnerable situations.
“We cannot look at everything that suppliers do, so we cannot guarantee there will be no bad practice out there. But we have the ability to go deep into a company to see what is happening.”
Responding to the news, Grant Shapps – Secretary of State for the Department for Energy Security and Net Zero – said the news was a “step in the right direction”, adding that both the regulator and suppliers “must put these words into action”.
Citizens Advice chief executive Dame Clare Moriarty, meanwhile, called on Ofgem to take swift action to make the voluntary code mandatory.
She said: “This voluntary code of practice is a much needed improvement in the protections people have against the forced installation of a prepayment meter by energy companies.
“It’s now up to suppliers to follow the rules and for Ofgem to crack down quickly on any sign of bad practice. The regulator must also act swiftly to make this voluntary code mandatory.
“For too many the damage has already been done. Suppliers must now check that none of their existing customers are paying for their energy via a prepay meter when it’s not a safe option for them.
In March, chancellor Jeremy Hunt announced that the extra costs for those on prepayment meters would be scrapped.
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