Money Matters: new rules for the installation of prepayment energy meters

In this week's Money Matters column, Wrekin's Debt & Energy Manager Dan Bebbington discusses new rules surrounding the installation of prepayment energy meters.

The installation of prepayment meters by energy suppliers has been under scrutiny recently, particularly following allegations of debt collectors breaking into people's homes to install them.

To address this, energy regulator Ofgem has introduced a new voluntary code of practice banning the installation of prepayment meters for vulnerable people, including those over 85 and those with chronic illnesses.

Suppliers generally install the meters as a way of recovering debt that builds up when people fall behind on payments. This can help customers to budget, but unit rates tend to be more expensive.

Under the code, energy firms will need to meet five conditions before installing meters, including signing up to the rules, providing monitoring data and reviewing historic meter installations.

Smart prepayment meters will be the only ones allowed to be installed, making it easier for energy users to top up and access support schemes.

The installation of prepayment meters will be completely banned for certain customers, such as those aged over 85 with no other support in the house and those who need a continuous supply of energy for health reasons.

It also covers people suffering from chronic or terminal illnesses, and those incapable of topping up the meter due to physical or mental incapacity.

Additional checks will also be required for households with children under five, people over 75, people living with other serious health conditions, and people temporarily vulnerable due to pregnancy or bereavement.

Before fitting prepayment meters, energy firms will need to undertake a vulnerability and affordability assessment, provide alternative repayment options to help customers clear their debt, and offer a £30 top-up credit to remove the risk of households being left with no supply.

Although the code is currently voluntary, all major suppliers are said to have agreed to sign up, and Ofgem is considering making the rules mandatory and legally enforceable before winter.

If you are concerned about being forced onto a prepayment meter, you can find full details of the code on Ofgem's website.

If you are struggling to pay for energy, you can can visit www.gov.uk/get-help-energy-bills to see what support you might be entitled to.

Tenants of the Wrekin Housing Group can contact us for assistance by emailing energyadvice@wrekin.com.

25th April 2023