The power regulator Ofgem has requested suppliers to droop the compelled set up of prepayment meters and assessment their processes for coping with prospects who’ve fallen into arrears.
Sky News understands the regulator made the request on Thursday after it was revealed that debt collectors working for British Gas had compelled their method into the properties of susceptible prospects.
Industry sources stated Ofgem had requested all suppliers to stop purposes for court docket warrants that enable them to enter the properties of consumers who haven’t responded to makes an attempt to take care of arrears.
Suppliers are required to pursue all out there alternate options over a six-month interval earlier than executing warrants and are not permitted to drive prepayment on susceptible prospects.
Centrica, British Gas‘s mother or father firm, stated it had utilized for about 97,000 warrants final 12 months and acted on round 20,000 of them.
EDF, the UK’s second-largest provider, stated it had utilized for nearly 14,000 warrants in 2022 however not acted on round half after contacting prospects and agreeing different technique of controlling arrears.
After Centrica introduced it was suspending all compelled installations, EDF stated it had launched a assessment of its practices and wouldn’t be pursuing warrants whereas it was ongoing.
EDF stated it compelled prospects onto prepayment meters solely as a “very last resort” when different avenues have been exhausted, and the corporate is known to have acted out of warning reasonably than in response to proof of dangerous apply.
In an announcement it stated: “We regularly review and update these processes and so we are confident they are fit for purpose. Nonetheless we are currently reviewing them again to reconfirm they are robust and see if we can make any improvements. We have suspended forced installation of prepayment meters while we conduct this latest review.”
A Scottish Power spokesperson stated: “We would not switch a customer to prepayment without advanced notice and installing a prepayment meter is always a last resort, only after we have exhausted all other options to speak to and work with customers on debt repayment.
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“We deplore the behaviours reported and have suspended all warrant installations whereas a radical investigation takes place.”
Shell Energy said it had extended an annual winter moratorium on forced installations.
“Every 12 months we pause installs in December and January, and we now have prolonged this moratorium this winter. It’s solely ever a final resort if a buyer would not interact with us for at the least six months – we’ll all the time discover a method to assist in the event that they do. And even then, if there may be any signal of vulnerability we won’t set up a pre-payment meter.
Read extra:
How do prepayment meters work and what are the principles round them?
What it is advisable find out about allegations prepayment meters have been compelled on susceptible prospects
Boss of British Gas proprietor says there may be ‘no excuse’ after prepay meters compelled on susceptible individuals
OVO Energy instructed Sky News it had suspended “warrant activity” in November and has now suspended all debt restoration on prepayment meters till March.
While there may be nice concern in regards to the enhance within the imposition of prepayment meters as a consequence of hovering costs, suppliers face monetary stress as a consequence of thousands and thousands of consumers struggling to fulfill funds.
Around 40% of consumers are estimated to be spending greater than 10% of their revenue on power and practically 1,000,000 power prospects are actually in arrears with suppliers with no plan to repay money owed.
Ofgem didn’t reply to requests for remark on the time of publication.
Source: information.sky.com”