Energy suppliers to pay out £540,000 to thousands of customers over meter issues
07.04.2024 - 20:25
/ manchestereveningnews.co.uk
Energy suppliers are being forced to pay out over £540,000 in compensation to certain households.
So far, a total of £342,450 has been paid to 1,502 customers who were incorrectly switched to a prepayment meter, according to the latest Ofgem figures. An additional £200,000 is expected to be paid out to another 1,000 customers.
It comes following a review ordered by Ofgem into individuals who were forcibly moved onto prepayment meters between the beginning of 2022 and the end of January 2023.
READ MORE: Ofgem announces new rules to stop 'price hikes and poor customer service'
The temporary ban on involuntary installations was introduced by Ofgem after an investigation by The Times revealed that debt agents acting for British Gas were forcing their way into the homes of vulnerable individuals. Some energy companies have since been permitted to resume the forced installation of prepayment meters, but under stricter regulations.
Energy providers are prohibited from forcibly installing prepayment meters in the homes of individuals aged 75 and over without support, as well as in households with children under two years old. The ban also extends to households where someone has a severe health issue or requires a warm home due to a medical condition.
According to Ofgem, the amount of compensation received by customers varies depending on their supplier and individual circumstances. Some have received cheques, while others have had energy credit added to their account or had their debt written off, reports the Mirror.
Ofgem has advised: "If a customer thinks their supplier installed a prepayment meter or switched their smart meter to prepayment meter mode when they should not have, they may be entitled to compensation.