- Suppliers must also make at least 10 attempts to contact a customer and conduct a welfare visit before a PPM is installed.
- We recognise that a careful balance is required to help manage debt while protecting customers in vulnerable situations.
On Tuesday, British energy market regulator Ofgem said it had agreed on a new, tougher code of practice with energy suppliers on the forced installation of prepayment meters (PPMs) to protect vulnerable customers better. In February, Ofgem asked all suppliers to stop such forced facilities and began a review after a report in The Times newspaper said the practice was being used against vulnerable people who risked having their heating cut off if they did not pay.
The new code includes banning the involuntary installation of PPMs in the homes of those aged over 85 or where the occupant is severely ill. Suppliers must also make at least 10 attempts to contact a customer and conduct a welfare visit before a PPM is installed.
Ofgem said that representatives would wear audio or body cameras carrying out installations. Those forced onto a PPM would be given 30 pounds ($37) of credit to help reduce the risk of losing supply. Ofgem Chief Executive Jonathan Brearley said, “If and when involuntary PPMs are used, it must be a last resort, and customers in vulnerable situations will be given the extra care and consideration they deserve. We recognise that a careful balance is required to help manage debt while protecting customers in vulnerable situations.”
Ofgem said it would consult on incorporating the voluntary code into suppliers’ licences to make it legally enforceable. “It’s now up to suppliers to follow the rules and for Ofgem to crack down quickly on any sign of bad practice,” said Clare Moriarty, Chief Executive of Citizens Advice.