Ofgem puts block on forced installations of energy prepayment meters

Energy suppliers have been banned from forcibly installing prepayment meters until they agree to a legally enforceable code of practice, after The Times revealed vulnerable customers were targeted.

British Gas was condemned by a senior MP for an “extraordinary” failure to create a compensation scheme for victims of improper meter replacement.

An undercover reporter from The Times found that a debt collection agency used by British Gas threatened to force their way into the homes of vulnerable customers, including a single father of three young children and a young mother with a four-week-old baby.

Executives from the regulator, energy companies and debt collection agencies were questioned during a joint meeting of the Commons justice committee and business and energy committee.

Darren Jones, chairman of the business and energy committee, said it was “extraordinary” that British Gas had not created a compensation scheme following the Times revelations.

• Times investigation: How British Gas debt agents break into homes of vulnerable

Chris O’Shea, chief executive of Centrica, which owns British Gas, said 300 customers have complained that they were wrongly moved since the investigation was published.

“We’re looking into every one of those cases. If that’s the case, then we will reverse it, we will make it right,” he said.

The company will not resume forced switch overs until it understands whether there is a “systemic issue”, he added, with its investigation not due to be completed before the end of next month.

Jonathan Brearley, chief executive of Ofgem, said he was “deeply concerned” by the issues highlighted. The regulator will take enforcement action and fine companies if its compliance review finds problems.

A new code of practice will be completed by the end of the month but companies will not be allowed to resume making forcible switches to prepayment meters until they prove they are obeying the new rules, he said.

“We are very clear that vulnerable customers need to be handled fairly,” Brearley said.• ‘I thought we’d been burgled — it was British Gas’

The regulator has told energy companies to review records of customers forcibly moved to prepayment meters.

Robin Cantrill-Fenwick told the committees he resigned as a magistrate last year as new advice to courts in 2019 on issuing warrants allowing energy companies to force their way into customers’ homes was unfair.

Magistrates are now required to take an “uncritical role” in assessing applications for warrants, which appear on a “bulk upload” of lists of up to 1,000 names at a time rather than individual cases, he said.

Occupants were not told when or where the hearings were taking place so they could challenge the application, he said.

In 2019 magistrates rejected 1,824 applications, and this fell to 43 the following year. In the 18 months to December last year, magistrates granted 536,139 warrants and refused 75, the committee was told.

The debt collection agency Arvato Financial Solutions — which was exposed by The Times — had been awarded 300,000 court warrants to forcibly change meters in the two years to December.

Lord Justice Edis, one of Britain’s most senior judges, last month ordered courts to stop listing the hearings for energy warrants “until further notice”.

Following the Times investigation Centrica apologised for its agents’ conduct and said protecting customers was “an absolute priority”. Arvato said it “acts compliantly in accordance with the regulatory requirements”.