The regulator has confirmed that the code of follow for the involuntary set up of prepayment meters (PPMs) will probably be made necessary whereas additionally extending safety towards pressured installations for essentially the most weak households.
A voluntary code of follow governing the set up of prepayment meters, which all vitality corporations signed as much as in April, was put in place after proof emerged of dangerous behaviour by suppliers severely affecting struggling clients.
Currently, no suppliers are finishing up involuntary installations and face extreme penalties in the event that they do except they meet strict standards set by Ofgem.
Under the brand new guidelines, which come into impact on November 8, suppliers should guarantee they’re appearing in a good and accountable method with involuntary installations used solely as a final resort.
Protecting essentially the most weak customers is on the coronary heart of what we do, and this resolution not solely cements the protections Ofgem put in place for individuals deemed most in danger, it goes additional to guard essentially the most weak households
Neil Kenward, director for technique at Ofgem, stated: “Protecting the most vulnerable consumers is at the heart of what we do, and this decision not only cements the protections Ofgem put in place for people deemed most at risk, it goes further to protect the most vulnerable households.
“Prepayment meters are an important payment method that help millions of households to manage their energy bills, but they are not suitable for everyone.
“Today’s enhanced rules are there to provide protection from bad practice while ensuring that, when needed, and as a matter of last resort, suppliers are using involuntary installations in a fair and responsible way.
“Ofgem will be monitoring suppliers’ behaviour closely to ensure they are complying with the spirit and letter of these rules. If that is not the case we will not hesitate to take action.”
Following a public session over the summer season, the code will develop into a part of suppliers’ licence situations, and breaking the foundations may end in enforcement motion and “substantial” fines, Ofgem stated.
Initially, the no-install rule utilized to clients aged 85 and over with no different help of their house, or households with residents with extreme well being points together with terminal sicknesses or these with a medical dependency on a heat house.
Ofgem stated dropping the higher age restrict to 75 and including houses with very younger youngsters will guarantee extra persons are protected this winter.
Dhara Vyas, deputy chief government of business physique Energy UK, stated: “Ofgem has previously acknowledged that the new process will result in fewer installations and an increase in consumer debt – in addition to that built up during the current pause.
“The extension of the exempt categories is likely to further increase the level of bad debt. It underlines the urgency of tackling the growing affordability crisis and the importance of stopping debts building up in the first instance.
“This winter is going to be very difficult for millions of energy customers. We continue to urge the Government to introduce targeted support for this winter and to press ahead with developing long-term targeted financial support – such as a social tariff – for those customers most in need, as well as improving the energy efficiency of as many homes as possible to cut bills permanently.”
