I have received the email below from Ofgem.
Good morning,
Ofgem, has today set out the next steps in the British Gas investigation and Prepayment Meter (PPM) review to support and protect energy customers when suppliers fit PPMs by force or via remote switch.
Ofgem CEO, Jonathan Brearley, has also called on all suppliers to use the pause in installations (lasting until 31 March 2023) to review all of their recent forced and remotely switched PPM installations, and consider if any need to be reversed, and compensation offered where the strict rules have not been followed.
Jonathan Brearley said:
“As a result of the unprecedented surge in energy prices, households across the country are facing significant energy bills and this has meant many are finding themselves in debt and being forced onto prepayment meters (PPMs). I am concerned about the way customers in already distressing situations are being treated when suppliers force them onto PPMs. That’s why, today, we have set out further details on the two investigations, one into British Gas for potential breaches that have been alleged indicating that something went very badly wrong at British Gas and the other into PPMs across all suppliers to assess whether this is an isolated case.
“The rules and regulations are clear that installing forced PPMs should only be done as a last resort and only where it is safe and practicable to do so. We expect suppliers to treat customers with compassion and professionalism and those executing a warrant should take into account what they find when they visit a home and pause the installation if they see a safety risk. Where this hasn’t happened, we will hold suppliers to account.
“However, I’m telling suppliers not to wait for the outcome of our reviews and to act now to check that PPMs have been installed appropriately, and if rules have been broken, offer customers a reversal of installations and compensation payments where appropriate. There will also be fines issued from Ofgem if the issue is found to be systemic.
“We are taking this issue extremely seriously and customers should feel reassured that where the rules have been broken, Ofgem will act.”
The regulator has today announced:
- The terms of reference of the urgent investigation into British Gas.
- The scope of the in-depth Market Compliance Review into the issue of how PPMs are handled across the market, to include targeted engagement - facilitated through consumer groups and the Energy Ombudsman.
- A call for all suppliers to use the current pause in PPM installations to proactively check if any have been installed incorrectly and, if so, to consider removing them and offering compensation where appropriate. Ofgem will be checking actions but has made clear that suppliers should not wait to act themselves.
- The launch of urgent work with stakeholders to look at what further protections may be needed within the rules, regulations and guidance around PPMs and seek views on other measures that could reduce the need for PPMs to be installed or switched to remotely, to conclude by the end of March 2023.
I hope you will find this information useful.
Kind regards,
