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Ofgem orders energy firms to suspend force-fitting of prepayment meters

OFGEM has ordered all energy firms to suspend the forced installation of prepayment meters into people’s homes and review their policies of the practice. 

The move by the energy regulator follows disturbing revelations that debt collectors hired by British Gas had forced their way into vulnerable people’s homes. 

Ofgem boss Jonathan Brearley said: “It is astonishing for any supplier not to know about their own contractor’s behaviour, especially where they are interacting with the most vulnerable in our society.

“That’s why I’ve asked all suppliers to review all activities regarding [pre-payment meter] warrants.”

The Times reported that agents for Arvato Financial Solutions — a firm used by British Gas to pursue debts — had used locksmiths to force entry into homes to force-fit prepayment meters, despite evidence of people with disabilities and children living there.

British Gas has since said it will suspend the practice until at least after the winter. 

Ofgem is also demanding answers about Arvato’s bonus system for installing the meters, and whether it led to vulnerable people being “targeted for cash.”

“We want to establish if it was down to individual teams or a more systemic issue across the company,” Mr Brearley added.

Energy suppliers are required to pursue all available alternatives over a six-month period before executing court warrants, and are not allowed to force prepayment meters on vulnerable customers. 

Calls were also made today to look at how courts have been handling warrants to install prepayment meters. 

Former shadow energy secretary Caroline Flint, who now chairs the fuel poverty advisory committee, said: “We might need new laws but I think the courts need to look to themselves on this as well.

“I think there is a question about how these warrants seemed to have been waved through.”

She added that while the moratorium was welcome, it was “right to consider whether or not forced installation of meters should happen at all.”

Fuel poverty campaigners have called for an outright ban on the practice, warning that the forced installation of prepayment meters is leaving families and people with disabilities without light and heating. 

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