Tens of thousands of energy customers in the UK are set to receive compensation payouts of up to £1,000 each due to the forced fitting of prepayment meters. Following a review by the regulator, Ofgem, energy companies have agreed to pay out over £70m to affected customers, which includes compensation and debt relief.
The scandal surfaced during the height of the cost of living crisis, with reports of energy firms switching consumers to prepayment meters without consent, particularly targeting vulnerable individuals who had fallen behind on their bills. This practice often involved agents from British Gas forcibly entering properties with police and locksmiths to install the new meters.
Ofgem's review from January 2022 to January 2023 concluded that suppliers had failed to meet the required standards in their treatment of customers. As a result, eight suppliers have been found to be at fault: Scottish Power, EDF, E.ON, Octopus, Utility Warehouse, Good Energy, Tru Energy, and Ecotricity. These companies have already paid out £55m in financial support and are now set to provide an additional £5.6m in compensation to 40,000 customers and write off £13m in debt.
Customers eligible for compensation could receive payments ranging from £40 to £250 or £500, depending on the severity of their case. Those who experienced particularly inappropriate installation practices could be entitled to the maximum £1,000 payout.
If you have not yet received help or been contacted by your energy supplier regarding this issue, Ofgem advises that you do not need to take any action as compensation will be paid directly into customer accounts. The regulator's intervention has led to the suspension of all forced installations and the implementation of new guidelines to protect consumers.
0900cc44-5b99-4719-9ed3-716a7a9d9681.jpeg
This compensation scheme is part of a larger effort to address the mistreatment of energy customers by the industry, which came under intense scrutiny during the cost of living crisis. The scandal has prompted a reevaluation of the prepayment meter system and the way in which energy companies support those facing financial difficulty.
BBC