Major update for energy customers on prepayment meters as thousands could be owed compensation – are you one of them?
THOUSANDS of customers on prepayment meters could be in line for compensation.
The boss of the energy regulator Ofgem has said that energy firms should offer payouts to households where meters were wrongly fitted.
Chief executive Jonathan Brearley said energy companies must immediately review how and why they install prepayment meters.
It follows a ban on fitting them after an investigation found that they were being wrongly installed for vulnerable customers.
"If you know people have had a prepayment meter inappropriately installed, fix it now," he told BBC Radio 4's Today programme.
"That means going back to that customer, asking them whether they want to continue on that meter, if they don't change that meter and offer compensation where appropriate."
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The energy boss said Ofgem has told companies it will review what they are doing and if they are following rules.
Ofgem will investigate if British Gas has properly supported customers in debt before moving them onto a prepayment meter - or disconnecting their supply.
It will also consider whether British Gas assessed if its safe for that customer to have one installed.
A wider review will also look at what policies suppliers have in place for remotely switching customers to smart prepayment meters, and fitting a prepayment meters under warrant.
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It will also look at how firms identify vulnerable customers and how they support them.
A Times investigation found that British Gas was forcibly installing prepayment meters to customers, many of them vulnerable.
The report sparked an urgent inquiry by regulator Ofgem.
British Gas and other suppliers have since stopped installing the devices.
A temporary ban on energy firms forcibly putting customers onto prepayment meters will end in March, Ofgem has said.
It will mean that any customers who find themselves in debt to their energy provider could be automatically moved onto a prepayment meter from March 31.
Sun Money called for a ban on fitting prepayment meters in households in August last year.
Estimates suggest that over four million households already face paying around £60 more for energy just because they have one installed.
Warrants give energy firms the legal right to enter homes and install the meters, but these should only be used in exceptional circumstances and should be a last resort.
This usually happens if a customer is in debt with their energy bill and the supplier has been unable to contact them for a prolonged period of time.
But suppliers must take into account the circumstances of a customer, including if they are vulnerable.
This can include if they are elderly, in bad health or have children.
Will I get compensation?
It's not clear yet how much compensation people could get or who's affected yet.
That's because Ofgem is still investigating. But it's asked suppliers to "proactively check" if any meters have been installed incorrectly.
The regulator has also asked that if they do find they are installed correctly, that they consider removing them and offering compensation where appropriate.
If you're unhappy with your supplier for any reason you can complain directly to them.
How you do this will depend on who you're with.
You can check on your supplier's website how to make a formal complaint, or on your latest bill.
When you make a complaint, make sure you follow the procedure so they have the information they need to resolve the issue.
You should also keep a record of any contact and correspondence.
Energy suppliers have eight weeks to respond and come to a decision.
If it doesn't or you're not happy with the response, you can take the firm to the Energy Ombudsman.
Before you can submit your complaint to it, you must have logged a formal complaint with your provider and worked with the firm to resolve it.
You must also have received a so-called deadlock letter, where the provider refers your complaint to the Energy Ombudsman.
You can also complain if you haven't had a satisfactory solution to your problem within eight weeks.
What energy bill help is available?
A £900 payment will be going to millions on means-tested benefits and Universal Credit in 2023.
To be eligible for the payment, households will need to be claiming at least one of the following:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Housing Benefit
- Council Tax Support
- Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
- Universal Credit
Elderly Brits will receive another one-off £300 pensioner cost of living payment.
Those with certain disabilities will also qualify for a further £150 cost of living payment.
Energy suppliers also offer plenty of energy grants and schemes to help you out if you're struggling. Here's a list of schemes open right now:
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- British Gas Energy Trust Individuals and Family Fund
- British Gas Energy Trust
- EDF Customer Support Fund
- E.ON and E.ON Next Grants
- Octopus Energy Assist Fund
- OVO Energy
- Scottish Power Hardship Fund
There's also a one-off fuel voucher from your energy supplier if you're on a prepayment meter.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]