Forced prepayment meters: Everything you need to know about the ban and who is still at risk

Over-85s and those with certain disabilities are safe from forced prepayment energy meters thanks to new Ofgem rules – but the devices can still be fitted to millions of homes from May.

Prepayment meters have been in the spotlight after it emerged last month that energy firms were fitting these without their customers’ wishes. 

Firms including British Gas sent debt collectors to break into the properties of people struggling to pay their bills and forcibly installed the devices.

In response, energy regulator Ofgem today banned the forced installation of prepayment energy meters in the homes of over-85s, as well as those with certain disabilities.

But the new Ofgem rules still allow energy firms to fit prepayment meters by force in most UK households, including those of people who have conditions such as Alzheimer’s disease, Parkinson’s disease and depression.

Here is everything you need to know about how the new rules work and which homes could still have prepayment meters fitted without consent.

Have you had a prepayment meter forcibly installed? Email helen.kirrane@thisismoney.co.uk

What are the new prepayment meter rules?

All energy firms in England, Scotland and Wales have signed up to a code of practice setting out clear procedures to protect vulnerable customers. Workers must now also wear body cameras. The code is voluntary, however.

It comes after energy suppliers were temporarily banned from involuntarily fitting prepayment meters in people’s homes, since it was revealed that vulnerable people were having meters forcibly installed in their homes by British Gas and other suppliers.

Now, new protections for consumers mean that from May suppliers must make multiple contact attempts by a range of methods and conduct a site welfare visit before involuntarily installing a prepayment meter.

Energy suppliers must also now wear an audio recording device or body camera on all site welfare visits and installation visits.

They will not be allowed to fit prepayment meters for customers over 85 or anyone with a terminal illness or certain disabilities.

Those forced on to a prepay meter – either by warrant or remotely – will be given £30 of credit initially to reduce the risk of them losing supply.

Suppliers have also been told to identify where meters were wrongfully installed and to return those customers to their previous tariff and offer compensation.

Who is exempt from forced prepayment meters?

Those in ‘high risk’ categories are exempt from having prepayment meters forcefully installed under the code.

Also exempt are people who are aged 85 and over and live alone. Households which require a continuous energy supply, for example because someone in the household requires a ventilator or dialysis, are also exempt. 

Exemptions also apply to those who are not able to operate a prepayment meter either due to physical or mental health conditions.

Households with members who have a chronic or severe or terminal health condition, such as cancer or a cardiovascular or respiratory disease will also not be subject to forced installation of a prepayment energy meter.

Who could still have a meter forcibly installed?

Ofgem’s code includes a ‘medium risk’ category. The code states that suppliers should give consideration to the vulnerability of people in this group, but can still decide to forcibly fit a prepayment meter.

This group includes households with people aged over 75 and those with serious conditions such as Alzheimer’s disease, Parkinson’s disease, clinical depression and multiple sclerosis. This category also includes pregnant women. 

Simon Francis from the End Fuel Poverty Coalition said: ‘We’re a bit puzzled as to how they have arrived at their categorisations.

‘For example how can someone with Alzheimer’s or cerebral palsy be only seen as medium risk?

‘These groups will now be subject to some form of energy firm health inspection, which sounds very troubling.’

Tom Marsland, policy manager at disability equality charity Scope, went further and said: ‘This process will still allow energy companies to install prepayment meters in some disabled households.

‘The medium risk group – who aren’t covered by an outright ban – includes people with conditions such as muscular dystrophy, cerebral palsy and Parkinson’s, for whom being cut off would be disastrous.

‘There needs to be a permanent ban on disabled people being forced onto prepayment meters.’

Heidi Chow, the executive director of charity Debt Justice, said: ‘this is an absurd decision from a toothless regulator.’

An Ofgem spokesperson said that the lists of conditions included in the categories are ‘not exhaustive’ and ‘suppliers must look at all individual circumstances and make a judgment’.

The energy regulator added that its voluntary code could change in the future.