Tuesday, September 26, 2023

Ban on compulsory installation of prepaid meters in the UK

The UK’s main energy regulator, Ofgem, has announced that energy suppliers are now banned from compulsory installation of prepaid meters (PPM) in homes where people over 75 do not supported, as well as in homes with children under two years of age. Ofgem has made mandatory the code of practice governing involuntary installations of these meters, giving protection to the most vulnerable households.

The voluntary code of practice, which was implemented in April and signed by all energy companies, was established based on evidence that suppliers were making bad practices that negatively affected customers in financial difficulty. Ofgem has tightened regulations, imposing heavy penalties on suppliers who carry out involuntary installations unless they meet strict criteria.

Under the new rules, which came into force from November 8, providers must act fairly and responsibly, considering involuntary installations as a last resort. Neil Kenward, Ofgem’s chief strategy officer, stressed the importance of protecting vulnerable consumers and ensuring prepaid meters are used correctly. Ofgem will closely monitor suppliers to ensure compliance and take action where necessary.

In addition to the current criteria, which apply to people over 85 years old or with serious health problems, the maximum age limit has been reduced to 75 years. Households with small children will also be included now, which will provide more protection during the winter months.

These regulations aim to protect vulnerable households and prevent misuse of prepaid meters. Ofgem’s decision reinforces its commitment to protecting consumers and ensuring that suppliers act responsibly. Suppliers will be bound by the new rules as part of their licensing conditions, and any breaches could result in enforcement action and hefty fines.

Nation World News Desk
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