Hundreds of vitality prospects to get compensation over pressured prepayment meters

[ad_1] Your assist helps us to inform the story From reproductive rights to local weather change to Massive Tech, The Impartial is on the bottom when the story is creating. Whether or not it is investigating the financials of Elon Musk's pro-Trump PAC or producing our newest documentary, 'The A Phrase', which shines a light-weight on the American ladies combating for reproductive rights, we all know how essential it's to parse out the information from the messaging.

At such a crucial second in US historical past, we want reporters on the bottom. Your donation permits us to maintain sending journalists to talk to each side of the story.

The Impartial is trusted by People throughout the complete political spectrum. And in contrast to many different high quality information retailers, we select to not lock People out of our reporting and evaluation with paywalls. We consider high quality journalism ought to be out there to everybody, paid for by those that can afford it.

Your assist makes all of the distinction. Learn extra Hundreds of vitality prospects who have been pressured to have prepayment meters put in of their houses are set to obtain compensation or have their money owed written off, Ofgem has mentioned.

Following a assessment into vitality corporations forcing susceptible prospects onto prepayment meters, the regulator introduced that eight suppliers will present compensation and assist.

Scottish Energy, EDF, E.ON, Utility Warehouse, Good Vitality, TruEnergy, and Ecotricity have all agreed to the scheme.

Ofgem acknowledged that the suppliers have dedicated to paying extra compensation the place it's due, and in some circumstances, will write off a number of the vitality money owed of shoppers who had a prepayment meter put in involuntarily between 1 January 2022, and 31 January 2023.

The suppliers pays £5.6 million in compensation to 40,000 prospects who had a prepayment meter put in involuntarily throughout the evaluation interval, utilizing pointers set out by Ofgem. This might imply round £140 for every buyer.

Moreover, the suppliers will write off an extra £13 million of debt from prospects who had a prepayment meter put in involuntarily throughout the identical interval.

This motion is along with the £55 million in monetary assist already offered on to affected customers by suppliers earlier than the assessment's completion, which included hardship funds and debt write-offs, the regulator added.

<img src="https://static.independent.co.uk/2025/02/18/14/08/energy-gas-bill-stock-ofgem-price-cap.jpeg" srcset="https://static.independent.co.uk/2025/02/18/14/08/energy-gas-bill-stock-ofgem-price-cap.jpeg?quality=75&width=320&crop=3%3A2%2Csmart&trim=0%2C0%2C0%2C0&auto=webp 320w, https://static.independent.co.uk/2025/02/18/14/08/energy-gas-bill-stock-ofgem-price-cap.jpeg?quality=75&width=640&crop=3%3A2%2Csmart&trim=0%2C0%2C0%2C0&auto=webp 640w" loading="lazy" alt="The energy suppliers will pay £5.6 million in compensation to 40,000 customers" class="sc-1mc30lb-0 QHifS inline-gallery-btn"/> open picture in gallery

The vitality suppliers pays £5.6 million in compensation to 40,000 prospects (Getty Photos/iStockphoto) Clients recognized as having had a PPM wrongly put in or the place processes weren't adopted adequately between January 1 2022 and January 31 2023 might be contacted by their suppliers, and don't must take motion.

OVO has additionally confirmed it'll pay compensation to prospects in keeping with the rules developed by Ofgem.

Tim Jarvis, director-general of markets for Ofgem, mentioned: “This has been one of the vital detailed evaluations of provider practices in Ofgem’s historical past, tens of hundreds of circumstances. It has taken time, however our precedence has been to place issues proper for individuals who weren’t handled correctly, and guarantee we don’t see unhealthy observe repeated.

“Whereas the variety of circumstances the place a prepayment meter was wrongfully put in is comparatively low in comparison with the overall variety of PPM prospects, one case is one too many.

“Our assessment additionally discovered wider points with the processes suppliers had in place, which is why we’ve put in place clearer, harder guidelines to guard prospects in susceptible conditions, and I’m happy that from immediately suppliers might be making use of our compensation framework for these prospects affected and have additionally dedicated to additional assist similar to debt write-off.

“We've made our expectations clear to suppliers on how these prospects who have been handled poorly ought to be compensated. They've, and proceed to, work carefully and collaboratively with us to verify their processes are strong and that their prospects are correctly supported.

“We all know that PPMs could be an efficient instrument in serving to prospects handle their prices and debt. Nonetheless, prospects should at all times be handled pretty and compassionately, and we're assured that the adjustments we've got made are a big step to make sure that occurs.”

<img src="https://static.independent.co.uk/2025/03/18/12/14/Cabinet-meeting-ufrfyqg3.jpeg" srcset="https://static.independent.co.uk/2025/03/18/12/14/Cabinet-meeting-ufrfyqg3.jpeg?quality=75&width=320&crop=3%3A2%2Csmart&trim=62%2C0%2C571%2C492&auto=webp 320w, https://static.independent.co.uk/2025/03/18/12/14/Cabinet-meeting-ufrfyqg3.jpeg?quality=75&width=640&crop=3%3A2%2Csmart&trim=62%2C0%2C571%2C492&auto=webp 640w" loading="lazy" alt="Energy Secretary Ed Miliband said: “Justice is finally being delivered”" class="sc-1mc30lb-0 QHifS inline-gallery-btn"/> open picture in gallery

Vitality Secretary Ed Miliband mentioned: “Justice is lastly being delivered” (James Manning/PA Wire) Dhara Vyas, chief govt of Vitality UK, which represents vitality corporations, mentioned: “Suppliers have labored exhausting to co-operate with this complete assessment and brought additional motion to place issues proper within the circumstances the place a prepayment meter (PPM) shouldn’t have been put in – or the place there was inadequate assist for the shoppers involved.

“Suppliers have been working carefully with Ofgem to satisfy the necessities of its assessment and have signed as much as the Code of Observe earlier than they've been capable of restart involuntary installations of PPMs and have carried out thorough testing of the brand new processes.

“Involuntary installations have been a final – however essential – resort for circumstances the place repeated makes an attempt to deal with debt with the shopper via different means have been unsuccessful. It’s unhealthy for patrons to fall additional and additional into arrears, and unhealthy debt in the end drives up the costs which are paid by all prospects.

“For the reason that pause on installations, buyer debt has risen to a file £4 billion, and the business stays eager to work with Ofgem on the proposed aid scheme to deal with this downside.”

The scandal first made headlines two years in the past, on the peak of the cost-of-living disaster, when it got here to gentle that vitality corporations have been switching folks on to prepayment strategies.

This was accomplished by getting into properties to put in a wise meter or remotely altering a wise meter to prepayment mode.

The vitality regulator subsequently suspended all pressured installations and launched a assessment of the method.

It comes weeks after Good Vitality was made to pay £150,000 in compensation and redress after it failed to present ultimate payments and refund credit score to greater than 2,000 prepayment meter prospects.

Ofgem mentioned 2,284 prospects on prepayment meters have been affected by an error with Good Vitality’s billing system between 2014 and October 2023.

It meant that prepayment prospects who switched to a different provider or ended their contract with Good Vitality didn't get a ultimate invoice inside six weeks, as required by the watchdog.

Good Vitality paid out £150,067 consequently, with the common sum per buyer standing at £66.

Vitality Secretary Ed Miliband mentioned: “Justice is lastly being delivered to most of the households, numerous them susceptible, who have been affected by the scandal of vitality suppliers wrongly forcibly putting in pre-payment meters. The federal government has campaigned tirelessly on this subject and are happy to see the extent of compensation enhance to £18.6 million, up from £420,000 below the earlier authorities.

“Shoppers should come first, which is why we're reforming the vitality market to stamp out unhealthy observe and make it simpler to entry correct redress when issues go improper, via our complete assessment of Ofgem. This elevated compensation package deal is an efficient begin, and we might be asserting additional reforms within the weeks forward as we ship our Plan for Change.”