Ban on pressured set up of prepayment power meters to cowl extra households

Household power suppliers are going through harder restrictions on the pressured set up of prepayment meters following criticism that curbs failed to assist most of the most weak.

Industry regulator Ofgem mentioned it was tightening the no-install guidelines from 8 November to incorporate folks aged over 75 with no assist of their home and houses with kids aged below 2.

A brand new code, first introduced in April, had initially utilized to clients aged 85 and over with no different assist of their house or households with residents with extreme well being points.

It was a response to an investigation that exposed how debt collectors had pressured their means into houses to put in prepayment meters.

The observe has been quickly suspended since February.

Prepayment meters will be put in when a buyer is in debt and are pay-as-you-go, which means energy is reduce off if fee is not made.

Charges for fuel and electrical energy are greater than these paid by households paying by direct debit however the hole is shrinking below regulatory and political strain.

The new value cap degree imposed from 1 October will see the typical buyer with a prepayment meter see their payments fall to £1,949 per 12 months.

That sum is £26 greater that the everyday invoice confronted by these paying through direct debit.

Three million folks ran out of credit score on their pay as you go meter final 12 months, based on Citizens Advice, and greater than 94,000 had been forcibly put in.

The regulator mentioned it was performing to make sure that extra folks will likely be protected this winter.

“Currently, no suppliers are carrying out involuntary installations and will face severe penalties if they do unless they meet strict criteria set by Ofgem,” its assertion mentioned.

“When suppliers do so, the new rules – which come into effect on 8 November after a mandatory 56-day notice period – will ensure they are acting in a fair and responsible way with involuntary installations used only as a last resort.”

The regulator’s director of technique, Neil Kenward, added: “Protecting the most vulnerable consumers is at the heart of what we do, and this decision not only cements the protections Ofgem put in place for people deemed most at risk, it goes further to protect the most vulnerable households.

“Prepayment meters are an vital fee technique that assist thousands and thousands of households to handle their power payments. But they aren’t appropriate for everybody.

“Today’s enhanced rules are there to provide protection from bad practice while ensuring that when needed, and as a matter of last resort, suppliers are using involuntary installations in a fair and responsible way.

“Ofgem will likely be monitoring suppliers’ behaviour intently to make sure they’re complying with the spirit and letter of those guidelines. If that isn’t the case we is not going to hesitate to take motion.”