Energy Suppliers Pay £18.6M Compensation, Debt Write-Offs Over Forced Prepayment Meters

Ofgem has announced that energy suppliers will pay a total of £18.6 million in compensation and debt write-offs to at least 40,000 customers who had prepayment meters (PPMs) installed without their permission between January 2022 and January 2023. The payments include £5.6 million in compensation ranging from £40 to £1,000 depending on the severity of the breach, and £13 million in debt cancellations. This follows Ofgem's extensive Market Compliance Review, which found that some installations were unsafe or inappropriate, and highlighted poor supplier processes related to data quality and record keeping that prevented customers from receiving necessary support. Eight suppliers, including Scottish Power, EDF, and E.ON, have agreed to the scheme, with customers to be contacted directly and no action required on their part. The compensation package supplements £55 million in prior financial support such as hardship payments and debt write-offs already provided to affected consumers. Ofgem emphasized the review as one of its most detailed, reinforcing new, tougher rules to protect vulnerable customers from involuntary PPM installations in the future.