Featured in...
Dashboard
Uncategorized

Ofgem’s Shocking Decision

Janine Marsh Profile Picture
By
Janine
Janine Marsh Profile Picture

Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Feb 14th, 2024

This week there’s been a shocking revelation from Ofgem, the energy regulator.

They’ve granted permission to major energy companies like EDF, Octopus, and Scottish Power to forcefully install pre-payment meters on customers in debt. The announcement is met with shock and disappointment, especially considering the disturbing events of last year.

Last February the Telegraph led an investigation into British Gas, where vulnerable individuals, including single mothers with infants and the elderly, found themselves forced into prepayment meters due to breaches by debt collectors. The fallout from this situation led to the dismissal of debt collectors Arvato by British Gas, following an inquiry that exposed at least 13 cases of incorrect installations. 

The consequences were awful. Leaving vulnerable individuals in the cold when they couldn’t afford to pay for their energy.

Astonishingly, British Gas alone installed 25,000 prepayment meters under court warrants last year alone.

The Effect of the Prepayment Meters Last Year

The scale of the issue becomes even more disheartening when you consider that during the peak of the cost-of-living crisis, 600,000 homes were forced into prepayment meters.

Last year some pensioners were the awful choice between heating their homes or eating. 

The prior ban on forced meter installations by Ofgem, enacted after the discovery of debt collectors forcibly entering vulnerable homes, has been lifted in the wake of assurances from energy giants EDF, Octopus, and Scottish Power. Ofgem’s director general, Tim Jarvis, insists that the decision is rooted in their commitment to protecting consumers. 

Ofgem’s New Rules

Certain conditions have been laid out for these energy companies, including the prohibition of forced installations for individuals over 75, those with children under two, or those with a terminal illness. Additionally, the companies must make at least 10 attempts to contact customers before considering any forceful installations.

Despite these precautions, there is a lingering worry. The fact that an investigative inquiry was required to uncover misconduct in the past raises concerns about the awareness of our consumer rights. 

A poignant story of a pensioner facing legal action over a nearly £13,000 energy bill due to a ‘meter mixup’ shows that energy companies can make huge mistakes. Despite the eventual cancellation of the bill, the man endured months of stress and fear, which shows the lack of compensation for such distressing incidents.

If you’re struggling with your energy bills here’s a quick 3-point guide

  • Check your direct debit, make sure your meter readings are up to date and accurate if you’re not on a smart meter so that you don’t overpay.
  • If you’re struggling to pay, contact your energy supplier and ask for an “able to pay plan.” They may be able to come up with a way to make your payments more manageable.
  • Make sure you take advantage of all the benefits you’re entitled to. 

If you have elderly relatives, look into the Green Doctors service, it’s free and they assist vulnerable individuals with small improvements for energy efficiency. They can also help with bills and fuel debt.

For more information, make sure to also check out our guides sharing debt information and advice.

Make sure you stay informed, make official complaints when necessary, and try and get through the cold months, hopefully we’ll be switching off heating in spring. 

Did you like this article?
Show your support ❤️
We're glad you liked the article! As a small team, your support means everything to us. If you could rate us on Google, it would be amazing. Thank you!
We are so sorry...

Is there something missing? We’re all ears and eager to improve. Send us a message and let us know how we can make our article more useful for you.

You can email us directly at [email protected] to share your feedback.

The authors
Janine Marsh Profile Picture
Author
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.