Around four million people in the United Kingdom utilize pre-payment meters, a method where they pay for energy in advance instead of receiving bills based on their direct debit account. However, these meters have faced controversies, especially due to the higher charges imposed on prepayment customers in the past. Reports of energy suppliers forcefully installing such meters in the homes of vulnerable customers have prompted Ofgem, the energy regulator, to take action.
As part of the crackdown, energy companies are now prohibited from forcibly fitting prepayment meters in the homes of individuals aged over 85 or those who rely on a continuous supply of electricity for medical equipment. Additionally, suppliers’ staff are required to wear body cameras during prepayment meter visits. All energy suppliers have also voluntarily agreed to follow a new Ofgem code regarding prepayment meter installations, with the regulator considering making it a requirement in their licenses.
In recent news, Ofgem has reduced the energy price cap, which sets limits on the amount providers can charge per unit of gas and electricity on standard variable tariffs. The current cap stands at £3,280 and includes an allowance for bad debt, referring to payments unlikely to be recovered from customers.
However, the specifics on how customers will be charged the additional levy remain unclear, as Ofgem has not yet responded to requests for comment.
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