Following the intervention of Energy Security Secretary Grant Shapps, all energy suppliers have now committed to ending the forced installation of prepayment metres in the homes of vulnerable customers.
Concerns were raised about the sharp increase in companies seeking warrants to enter people’s homes and forcibly install prepayment metres, so Mr Shapps wrote to energy executives demanding that they revise their practises and improve their action to support vulnerable households, to ensure that prepayment metres are installed only as a genuine last resort. As part of this, he requested that all suppliers outline what they are doing to assist their customers, how many warrants they have each sought, and plans to correct any wrongdoing.
It comes after the Energy Security Secretary launched a crackdown on customer mistreatment last month, charging the Energy Minister with meeting with suppliers to explain their actions and urging magistrates to improve their scrutiny of warrants that cross their desk. Just this week, Lord Justice Edis directed magistrates courts to stop approving warrants to force-fit prepayment metres, effectively putting an end to the practise.
However, given the energy regulator’s failure to identify recent unacceptable behaviour, such as that of British Gas, or other significant shortcomings, he directed Ofgem to improve their oversight of these companies and toughen up on suppliers. In response to the Energy Security Secretary’s request, Ofgem has committed to speaking with consumers about their experiences rather than just suppliers.
This week, the Energy Security Secretary gave suppliers a deadline to report back on corrective action for customers who received incorrect installations.
All suppliers responded by the deadline set by the Energy Security Secretary, pledging to end the practise, which violates rules in place to protect vulnerable households, and outlining their plans for identifying those who may have had metres installed incorrectly. However, while several set out the redress that would be provided to customers in this case – such as compensation or the replacement of a prepayment metre with a credit metre – a number failed to address the question.
As a result, the Energy Security Secretary discovered that most suppliers are failing to correct their ways, and that stopping forced installation is “only the beginning” of fixing the “abhorrent” practise of forcing prepayment metres into vulnerable customers’ homes.
He stated that he will continue to advocate for vulnerable consumers whose homes have been invaded, and that this will not happen again in the future. However, he is still pressing suppliers to make good on failures and was irritated when letters back to him only provided ‘half the picture,’ with details on how they will correct wrongdoings missing from several responses.
Grant Shapps, Secretary of Energy Security, stated:
“People will have understandably been shocked and appalled at how vulnerable people’s homes have been invaded and prepayment metres installed against their wishes – and suppliers are only at the beginning of correcting this abhorrent behaviour.
“Since those reports were published, I have demanded answers from suppliers, and Ofgem: all suppliers are now halting forced installations, magistrates are no longer signing off warrant applications and Ofgem are upping their game when it comes to their reviews.
“But I am angered by the fact some have so freely moved vulnerable customers onto prepayment metres, without a proper plan to take remedial action where there has been a breach of the rules. So far, I’ve only received half of the picture, as there hasn’t been enough action to provide redress to those who have been treated so horribly.
“This is simply not acceptable and must be addressed by Ofgem’s review – I want to see supplier plans implemented and customers given the service they have a right to expect.”
Following the Times investigation, British Gas CEO Chris O’Shea was summoned to meet with the Energy Minister and instructed to take immediate steps to repair the damage done to the company’s reputation and to outline the role he will personally play in resolving these cultural issues.
He was also told that vulnerable, mistreated customers must be identified and redressed, with the Energy Security Secretary keeping a close eye on things to ensure this happens.
Mr Shapps is sharing the responses with Ofgem, the energy regulator, who is currently conducting a review into the use of prepayment metres, and telling them that what he has seen so far is simply not good enough.
He has urged them to establish a new customer reporting system that allows households to share their own stories about how they are treated, particularly those who are vulnerable, rather than relying solely on energy company executives to share information. The regulator has confirmed that they will consider doing so, such as by working more closely with charities and other consumer advocacy organisations.
Mr Shapps stated that he will be keeping a close eye on the activities of suppliers to ensure that this does not happen again, beginning with Ofgem changing the way they conduct their reviews so that they are never again duped.
