Did you fall behind on your gas or electricity bills and were forced to have a pre payment meter fitted in your home? Then you may be due compensation from your energy supplier.
Ofgem highlights forced pre payment meter fitting
A recent Ofgem compliance review has revealed that more than 150,000 homes were forcibly fitted with pre payment meters after falling into energy debt. Following these findings, the regulator has now obligated eight energy companies to pay £18.6 million to affected households.
Among the suppliers identified as falling below regulatory standards are:
- Scottish Power,
- EDF,
- E. ON,
- Octopus,
- Utility Warehouse,
- Good Energy,
- TruEnergy
- Ecotricity
Along with paying compensation, the companies are also pledging to write off a third of these energy debts.
How much compensation can you expect?
Households forced to have pre payment meters installed could receive payments starting at £40. In cases where customers received improper treatment, this could rise to £250 and £500. Some homes forced with ‘inappropriate installation’ had known vulnerable customers with mental illnesses and young children living there. For these cases, Ofgem has awarded compensation payments of up to £1,000.
Ofgem is under a UK Government review
Ofgem has not escaped without criticism. In 2023, campaign groups and MPs warned the regulator repeatedly to stop this practice for good. However, it allowed suppliers to resume several months later, despite still being banned in homes with young children or over 75s.
The UK Government is now reviewing Ofgem following its management of the 2022 energy crisis. During that time, 30 suppliers in the United Kingdom went bankrupt and household energy debt rose to £3.8 billion.
The energy secretary, Ed Miliband said,
“Justice is finally being delivered to many of the families, lots of them vulnerable, who were affected by the scandal of energy suppliers forcibly installing prepayment meters. Consumers must come first, which is why we are reforming the energy market to stamp out bad practice and make it easier to access proper redress when things go wrong.”
Are all energy companies due to pay pre payment meter compensation?
Other big energy firms including British Gas, Utilita, and Ovo Energy are under separate investigations right now. These results will be released at a later date.
ECO4 and Great British Insulation can save you money on your energy bills
If you have a property with a low EPC rating of E,F, or G and are struggling with rising energy bills, you could be eligible for government help. ECO4 and the Great British Insulation Scheme offer free property upgrades such as insulation, solar panels and heat pumps. Click the button below to see if you qualify!
