Energy Companies Ordered to Pay £70 Million Over Forced Prepayment Meters

Following a detailed review by regulator Ofgem, energy companies in the UK are set to pay over £70 million in compensation and debt write-offs to tens of thousands of customers who were forcibly switched to prepayment meters without their consent. This practice, which disproportionately affected vulnerable customers during the cost of living crisis amplified by the war in Ukraine, involved remotely switching smart meters to prepay mode or physically installing meters, sometimes forcibly, as revealed by investigations into firms like British Gas. Compensation amounts vary based on the severity of the treatment, ranging from £40 to £1,000, with additional debt write-offs totaling millions of pounds. Suppliers including Scottish Power, EDF, E.ON, and others have agreed to these payments and will contact affected customers directly, who do not need to take action to receive compensation. Ofgem has suspended forced installations and introduced new rules banning such practices for vulnerable groups, with firms facing enforcement actions and fines if they violate these rules. Industry representatives have acknowledged these measures as necessary to address debt issues, while regulators emphasize the priority to rectify past wrongs and prevent recurrence.