Tag: energy suppliers

Forcibly installed prepayment meters: major offenders named and shamed

‘over-zealous’ energy giants exposed

Over 94,000 prepayment meters were forcibly installed in homes under warrant last year without customer consent – on average over 7,500 meters a month.

After calling on suppliers to stop forcibly installing prepayment meters, the Energy Security Secretary Grant Shapps has now revealed the most overzealous suppliers, as part of a crackdown on mistreatment of vulnerable customers in the use of these meters.

Leading the charge with the highest number of prepayment meters force-fitted last year are British Gas, Scottish Power and OVO Energy, making up 70% of all forced installations with a total of 66,187 devices fitted under warrant.

Of these, Scottish Power tops the list as the worst offender when taking into account their customer base – force fitting over 24,300 in their customer’s homes in 2022.

Mr Shapps has today doubled down on his call for any mistreatment of customers to be rectified, while again urging suppliers to help the households on traditional prepayment metres access the 2.1 million vouchers yet to be claimed under the government’s Energy Bills Support Scheme.

Energy Security Secretary Grant Shapps said: “Today’s figures give a clear and horrifying picture of just how widespread the forced installation of prepayment meters had become, with last year seeing an average of over 7,500 force-fitted a month.

“Prepayment meters are right for some people, so I do not want to ban them outright, but I do have concerns that companies have not been treating their customers fairly, over an already difficult winter during which the government has tried to help families by paying around half the energy bill of the average household.

After my calls for change, I’m pleased that suppliers have made their actions public and agreed to put a stop to forcing prepayment onto vulnerable customers for good – but this cannot happen again.

“I will be watching Ofgem’s ongoing review closely so customers get the support they need – and those vulnerable consumers who have wrongly suffered forced installations get the justice they deserve in the form of redress.”

Minister for Energy Consumers and Affordability Amanda Solloway said: “Another increase in the number of energy bill support vouchers redeemed by customers is great news, but I urge those that haven’t done so to use them as soon as possible – and suppliers must continue to do everything they can to make sure this happens. 

“We will not stand for the mistreatment of vulnerable customers who have been forced onto prepayment meters. I welcome the move from Ofgem to make it easier for customers to report cases but this can’t be a one off, and suppliers must now offer redress to those they have wronged.”

Prepayment meters allow customers to pay for gas and electricity on a pay-as-you-go basis and serve an important function by helping the avoidance of debt and court action.

However, an intervention from the Energy Security Secretary last month brought the practise to a firm halt, after evidence came to light of suppliers in forcing these meters on vulnerable households.

Mr Shapps demanded transparency from the sector over the number of forced installation warrants they had used, following a huge spike in applications as households grappled with high energy costs.

Lord Justice Edis issued directions for magistrates’ courts to stop all warrants that allow companies to force-fit these meters, alongside the government’s crackdown unacceptable behaviour from suppliers.

This move follows the government’s unprecedented support to help families with their bills this winter, including households on prepayment meters.

Latest figures published today show 7.6 million Energy Bills Support Scheme vouchers have now been redeemed by households that use prepayment meters across Great Britain, as of February – saving them up to £400 on their energy costs. 

Since the scheme launched the number of households redeeming their vouchers has steadily climbed with 78% used so far – up from 76% in January. Suppliers with the highest redemption levels include Shell Energy, E and Octopus Energy. However, those with the most vouchers still outstanding, with nearly 400,000 yet to be redeemed include Scottish Power, OVO Electricity and British Gas. 

Customers will also benefit from new protections, announced in last week’s Budget, that will see households on prepayment meters pay no more than other customers for their energy.

The recent action from the government led the regulator, Ofgem, to launch a review into the use of prepayment meters in the sector. Companies have been instructed to revisit their past cases and offer redress, such as compensation, to customers where these meters were wrongly installed and regulations have not been followed. 

Just last week, Ofgem also extended the ban on forced installations of prepayment meters until a new code of practice is agreed by energy companies, after British Gas was found to have broken into homes to fit the devices. 

The government continues to work with the sector, as well as consumer groups, charities and local leaders to reach eligible customers with unused vouchers that have not yet benefitted from the Energy Bill Support Scheme.

This includes ongoing information campaigns across community radio, social media, national magazine titles and roaming advert vans that have been popping up in towns and cities across the country.

Today’s figures show the delivery of Energy Bills. Support Scheme in England, Scotland and Wales

Shapps warns energy suppliers to end mistreatment of customers

The Business and Energy Secretary is today calling on suppliers to do more to protect vulnerable energy users

  • Business and Energy Secretary Grant Shapps backs consumers as offensive launched to crack down on rogue energy suppliers
  • Energy suppliers told they must stop the practice of forced fitting prepayment meters as the answer to families struggling to pay bills, following a huge surge in cases
  • The Business Secretary asks suppliers to share data on the number of warrants they have requested for this purpose to name and shame worst offenders

Business and Energy Secretary Grant Shapps has pledged to crack down on the mistreatment of energy users by suppliers, following reports showing some are doing nowhere near enough to support vulnerable customers.

He has written to energy suppliers calling on them to stop the harmful and anxiety inducing practice of forcibly moving consumers over to prepayment meters without taking every step to support consumers in difficulty.

The Business Secretary is asking suppliers to voluntarily commit to stopping this practice and holding their feet to the fire by demanding they share the number of warrants they’ve applied for in recent months.

He wants to see much greater efforts from suppliers to help consumers in payment difficulties before leaping to the extreme of forced prepayment switching, such as offers of additional credit, debt forgiveness or tools such as debt advice. In his letter, he has asked suppliers to discuss possible further action they can take to support customers and avoid forced fitting.

This action is part of a drive to increase transparency around prepayment meter installations, to track down the worst culprits and find out which energy companies are trigger happy in applying for them.

Courts are being overwhelmed with applications for warrants as they continue to mount, with reports that huge batches are being approved in a matter of minutes. The Business Secretary is working with Ofgem and the Secretary of State for Justice to ensure that the process by which suppliers bring these cases to court is fair, transparent and supports vulnerable customers.

Secretary of State for Business, Energy and Industrial Strategy Grant Shapps, said: “Suppliers are clearly jumping the gun and moving at risk customers onto prepayment meters before offering them the support they are entitled to – I simply cannot believe that every possible alternative has been exhausted in all these cases.

“I am deeply concerned to see reports of customers being switched to prepayment meters against their will, with some disconnected from supply – and quite literally left in the dark.

“Rather than immediately reaching for a new way to extract money out of customers, I want suppliers to stop this practice and lend a more sympathetic ear, offering the kind of forbearance and support that a vulnerable customer struggling to pay should be able to expect.”

This follows reports that the number of customers switched to prepayment meters has soared in recent months, and in many cases unwillingly and without the offer of support. In some instances, this has led to vulnerable customers having their gas and electricity supplies cut off with little or no notice.

Prepayment meters allow customers to pay for gas and electricity on a pay-as-you-go basis and serve an important function by helping the avoidance of debt and court action. A moratorium on forced prepayment switching could lead to an increase in bailiff action and so the Government wishes to avoid going down this route.

Under Ofgem rules forced switching to prepayment must only ever be a last resort but, with the nation battling with energy prices, more have struggled to pay their bills and been forced installations and self-disconnection.

In recognition of this, some energy suppliers are already taking steps to support consumers such as by pausing remote switching of smart meters to prepayment mode or providing additional credit to customers struggling to pay.

The Business Secretary wants all suppliers to step up this kind of support to avoid resorting to forced fitting.

Minister for Energy and Climate Graham Stuart said: “Switching users onto a prepayment plan should only ever be a very last resort and suppliers have a duty to exhaust all other avenues. It cannot be right that, at a time when consumers need compassionate treatment more than ever, so many are being let down in this way.

“The Government will continue to do all we can to ensure families and households stay warm this winter and we’re taking urgent action to bring about greater transparency when it comes to bad energy supplier practice.”

Concerns were also raised around the low number of vouchers being redeemed under the Government’s Energy Bills Support Scheme – meaning many vulnerable households had not had cash knocked off their energy bills.

Suppliers are urged to make every attempt to make sure this happens, with the Government to publish a list of supplier redemption rates – showing who is meeting their responsibilities and who needs to do more.

The Business Secretary is worried about the low uptake of customers on traditional meters in prepayment mode and has demanded more transparent reporting of voucher redemption rates.

He has encouraged traditional meter replacement with smart meters as they are able to receive government support payments automatically and detect self-disconnection.

Mr Shapps has written to Ofgem to ask that they do more to make sure suppliers protect vulnerable consumers. This includes revisiting their approach to enforcing supplier compliance, as well as the urgent publication of recent investigations outcomes into vulnerable customers.

The Minister for Energy and Climate Graham Stuart has asked energy suppliers, Ofgem, Energy UK and Citizens Advice to meet with him at the Department for Business, Energy and Industrial Strategy to discuss matters further next week.

The five-point plan to tackle bad behaviour by energy suppliers comprises the following actions:

  1. A call for suppliers to voluntarily stop the practice of forced prepayment switching as the answer to households struggling to pay bills and make greater effort to help the most vulnerable.
  2. Request of the release of supplier data on the number of warrant applications they have made to forcibly enter homes to install meters.
  3. Urgent publication of a list of supplier redemption rates for the Energy Bills Support Scheme vouchers – showing who is meeting their responsibilities and who needs to do more.
  4. The launch of a Government public information campaign reminding and informing eligible consumers to redeem their Energy Bills Support Scheme vouchers and how to do so. This will be through both advertising and direct communication channels, targeting the most vulnerable and those most likely not to have redeemed vouchers.
  5. Coordination with Ofgem ensure they take a more robust approach to the protection of vulnerable customers and conduct a review to make sure suppliers are complying with rules.

The five-point plan forms part of a wider effort to ensure that energy users are protected at this challenging time and the Government is exploring longer term measures to address this.

Sarah Boyack calls on UK Government to deliver cost of living support

Scottish Labour MSP, Sarah Boyack, has called on the Tory UK Government to get on with delivering their cost of living support package as who do not have a domestic electricity contract are still waiting for details of the support they will receive, despite payments already being made to residents with a domestic energy contract.

People without domestic electricity contracts are still waiting for confirmation that they will receive the £400 Energy Bill Support and how this will be paid to them

In a policy paper, the UK Government confirmed that the support will be provided to those who do not have a direct relationship with an electricity supplier – however, there is still no clarity about the process.

Sarah Boyack, Scottish Labour MSP for Lothian, said: “While there is revolving door for Prime Ministers and Ministers, the Tories are failing to deliver for local residents here in Edinburgh.

“Local residents who do not have a direct relationship with their energy supplier are still waiting for the clarification on how and when they will receive the £400 Energy Bill Support, as the winter weather starts to come in. 

“The cost of living emergency is already starting to bite as more and more families are having to make the choice between heating and eating.

“I have written to the Secretary of State for Business, Energy and Industrial Strategy to announce details as soon as possible which will provide certainty to families.”

Ofgem steps in as Our Power ceases trading

Our Power, the housing association-backed energy supplier, has ceased to trade. It’s understood Our Power has around 31,000 domestic customers.

Company directors blame volatile energy markets for the firms collapse, which will result in seventy job losses.

In a statement, Our Power directors said: “It is with heartfelt regret that Our Power board of directors has taken the decision to close by taking the company into administration.

“Directors had no choice but to reach this decision as the requirement to bring working capital into the business outpaced our ability to improve revenue collection and raise funds.

“The leadership team and directors have done their utmost to try to find a solution but have been unable to and reluctantly took the decision to close the business.”

Under Ofgem’s safety net, the energy supply of Our Power’s customers will continue and pre payment meters can be topped up as normal. The outstanding credit balances of domestic customers will be protected.

Ofgem will choose a new supplier to take on Our Power’s customers as quickly as possible. This supplier will contact these customers shortly after being appointed.

Ofgem’s advice to Our Power’s customers in the meantime is:

  • Do not switch to another energy supplier.
  • Take a meter reading ready for when your new supplier contacts you.

This will make the process of transferring customers over to the chosen supplier, and paying back their outstanding credit balances, as smooth as possible.

Philippa Pickford, Ofgem’s director for future retail markets, said: “Our message to energy customers with Our Power is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected.”

“Ofgem will now choose a new supplier for you, ensuring you get the best deal possible. Whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.”

“We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers.”

Updates are available from our website or through our twitter feed @ofgem.

Customers who have questions should visit the FAQs on our website. Or if they need additional support, call Citizens Advice on 03454 04 05 06 or email them via their webform. Alternatively, get in touch through Ofgem’s facebook or twitter feed @ofgem.

Port of Leith Housing Association has issued this advice to their tenants:

Important notice for Our Power Energy customers

We have been informed that Our Power Energy Supply Ltd has gone into administration. The energy regulator Ofgem will select a new supplier to take over any customer accounts held by Our Power.

If you are a customer of Our Power your energy supply will continue as normal and any credit you have will be transferred to the new supplier. If you have a meter, you should continue to top it up as usual.

You should hear from your new supplier soon.

In the meantime, you can find guidance from the regulator here: https://www.ofgem.gov.uk/…/ofgem-safety-net-if-your-energy-…