In response, all energy companies have said that they will stop force-fitting prepayment meters in the homes of vulnerable customers, according to the government. Magistrates have temporarily stopped signing off warrant applications.
This temporary ban on forced installations of pay-as-you-go meters is due to end on 31 March, when energy regulator Ofgem will announce new rules. However, its chief executive Jonathan Brearley, said that the ban will lift 'only when and if' firms follow the new code of practice.
In 2021, more than 65,000 prepayment meters were installed into homes under warrant.
Installing a physical prepayment meter by force isn’t the only way you could end up with pay-as-you-go energy rather than monthly direct debit payments. Smart meters can be switched from credit mode to prepayment mode without anyone needing to come to your home.
Between April and June 2022, more than 25,000 smart meters were switched from credit to prepayment. The justification for this is usually to repay debt if you owe your energy provider money.
There are rules governing when your supplier can and can't force you on to prepayment. Know what they are, when you can refuse and what to do if you think your smart meter has changed to prepayment without your knowledge.
Find out .When can an energy company force you to have a prepayment meter?
Recent headlines have focused on the physical replacement of standard meters with prepayment meters for customers in debt.
If you are struggling to pay your bills or in debt to your energy company, it must offer you a range of ways to pay, including:
It must give you 28 days to pay if you fall behind on payments. After that it can write to you to say it’s going to move you to a prepayment meter. It must not move you to prepayment if you’re disputing the money it says you owe. But if you don’t pay what you owe and refuse a prepayment meter, your energy supply could be cut off.
It can only force you to have a prepayment meter as a ‘last resort to avoid disconnecting your supply’.
Your supplier must tell you in advance that it’s going to install a physical prepayment meter in your home. This notice period is:
There are rules around when energy companies can and can't fit prepayment meters for debt. These rules are set by energy regulator Ofgem and state:
Suppliers should only use warrants where it’s proportionate to the amount owing. A magistrate should check a court warrant before approving it.
The rules also state that suppliers must not force-fit prepayment meters for people in vulnerable situations if they don’t want one. They also shouldn’t use warrants on people who would find it very traumatic.
You might have to pay to cover the costs of your energy firm applying for a warrant – this can be up to £150. If you're in a very vulnerable situation, you shouldn't be charged. Some energy firms don’t charge at all.
.How do the rules apply to smart meters?
It becomes more complicated when it comes to smart meters, as unlike traditional meters these can be switched to 'prepayment mode' remotely, which means your energy provider doesn't have to enter your home to do so.
However, according to Ofgem, the rules are the same as they would be for switching a physical meter, even if it can be done remotely. Smart meters shouldn't be switched to prepayment mode for debt collection without energy suppliers carrying out ‘appropriate assessments, including identifying any vulnerability’.
It should be a last resort, after your supplier has discussed other repayment options with you.
You should be given at least seven working days’ notice that your payment method will be changed.
To change your smart meter to prepayment, your energy supplier has to send a service request message via the national smart metering network.
It doesn't have to apply to a magistrate for a warrant because it doesn't need to enter your home to make the change. Some feel that this is an extra legal protection which is lacking for smart meter customers.
Case study: 'I didn't know smart meters could be changed to PAYG remotely'
Susan and John Walker came home from holiday to a freezing cold house with no electricity in December 2022.
The temperature where they live, in Perthshire, Scotland, had been below freezing for days. From their Loop app, they could see that their power had turned off two days earlier.
'The situation was very distressing,' Susan told Which?. The couple didn't know how to get power restored and felt that their energy supplier, EDF Energy, blamed them for it. They are in their 70s and on Scottish and Southern Electricty Networks' (SSEN) priority services register.
With no landline or computer (due to the power outage), they managed to access SSEN's website via mobile phone. A check on the supply found no problems and advised them to call EDF. EDF said that the meter was working properly and advised them to call an electrician. The electrician found that power was reaching the property, but not getting into the home becuase the smart meter stated that it had 'no credit'.
But as far as the Walkers knew, they paid for their energy by direct debit and had fixed their tariff for three years, 15 months previously. They had heard nothing about changing their meter to prepayment.
EDF later explained that the smart meter had been switched to prepayment two weeks before and had then run out of credit, so the supply had been cut off. It initially said that the smart meter couldn't be reverted without credit but, after a couple of hours' webchat and phone calls, agreed to put credit on the meter. Power was restored at 6pm.
The couple was left with an £80 electrician's bill, the cost of eating out while the power was off and losing some food that had defrosted in the freezer. It took several days until the house was brought up to a comfortable temperature again.
After haggling with EDF, they accepted its offer of £180 compensation.
'This wasn’t about money, it was about the injustice of EDF’s actions and the distress caused,' Susan said.
EDF explained that in September 2021 (before they moved into the property) it received a request to change the meter to prepayment. It then made the change in December 2022.
A letter from EDF containing a prepayment card had been sent to their old house (65 miles away) that they'd left 18 months earlier. It had then been redirected to their new address, but arrived in January – after their experience of finding their home without power.
Susan said that they're getting no benefit from their smart meter. She told us that the in-home display didn't work until a few days ago and the gas smart meter isn't sending meter readings to EDF. Given what has happened, she wouldn’t have them installed if given the choice again.
She didn’t know that smart meters could be changed to pay-as-you-go meters remotely.
EDF told us:'We're very sorry this happened and we will be getting in touch with Mr and Mrs Walker to see how we can make this right.'
My smart meter has been changed to pay as you go: what can I do?
If your smart meter is switched to prepayment mode, then the energy company must check that it’s safe and practical to stay that way. It should keep an eye on whether you don’t top-up and let your supply stop running – known as ‘self disconnection’.
You should be offered Emergency Credit, Friendly Credit and additional support if you need it.
If your provider finds that it’s not safe and practical for your meter to be in prepayment mode, it should make alternative arrangements or change your meter back to a credit one.
Energy companies have been told by regulator Ofgem to check all of their recent forced and remotely switched prepayment customers. If they find that they didn’t follow the rules they should consider:
Energy regulator Ofgem is investigating all suppliers’ practices for forcing customers onto prepayment.
Jonathan Brearley, chief executive of Ofgem, said: ‘I’m telling suppliers not to wait for the outcome of our reviews and to act now to check that prepayment meters 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 problem is found to be systemic.’
Benefits of prepayment smart meters
If you pay as you go for your gas and electricity, having a smart meter means that you won’t have to go to the shop to top-up.
You can top-up remotely:
You should get an in-home smart display. This shows how much energy you’re using and how much it’s costing in near real time. Seeing what you’re spending when you go about your day makes it easier to see where you can be more efficient.
The display can also give alerts when your credit is running low.
How to get help if you can’t pay your energy bills
Contact your energy supplier as soon as you can if you’re struggling to pay your bills. While you might not want to talk to your supplier, it must work with you to agree a payment plan that you can afford.
Check you’re getting all the government schemes and benefits to which you’re entitled. These include:
Some energy firms offer hardship funds. You can apply to these for help if you’re finding it difficult to pay your bills. You don’t always need to be a customer to access these funds.
We’ve listed them alongside our advice on .There’s also the Debt Respite Scheme (or Breathing Space scheme), which can give you up to 60 days’ space from creditors to focus on getting help with your debt.
source https://www.which.co.uk/news/article/can-your-energy-company-force-you-to-have-a-prepayment-meter-aEoQd9x9F0pI