(qlmbusinessnews.com Thurs. 4 April, 2024) London, UK —
Energy Companies Compensate Customers Over Prepayment Meter Controversy.
Energy suppliers have disbursed a total of £342,450 in compensation to customers who were incorrectly placed on prepayment meters, with additional payouts anticipated, according to regulator Ofgem.
Following Ofgem's directive, companies conducted reviews of cases involving individuals who were compelled to adopt prepayment meters between January 2022 and January 2023. As of now, 1,502 individuals have received compensation, while an additional 1,000 customers are expected to be reimbursed.
The issue arose amidst a scandal surrounding the imposition of prepayment meters. Energy companies had historically resorted to installing prepayment meters in households where bills remained unpaid. However, an exposé revealed that agents from British Gas were unlawfully installing these meters, often intruding into the homes of vulnerable individuals in violation of Ofgem regulations, prompting public outrage.
Following this revelation, all suppliers were instructed to conduct thorough reviews of such cases. Ofgem has now provided an interim update on the compensation payouts, indicating that £342,450 has been disbursed thus far, with plans for an additional £200,000 in payments to approximately 1,000 more customers. Notably, British Gas is undergoing a separate investigation and is not included in these figures.
An Ofgem spokeswoman affirmed, “We are collaborating closely with suppliers to ensure the identification of all eligible consumers and the prompt payment of appropriate levels of compensation.”
Simon Francis, coordinator of the End Fuel Poverty Coalition, urged Ofgem to extend the timeline for checks beyond the current 13-month period. He stressed the importance of reviewing every forced prepayment meter decision dating back several years, citing the significance of the recent compensation payouts.
The final compensation tally is anticipated to be disclosed by the end of June. While several suppliers have been granted permission to resume the forced fitting of prepayment meters, they are now subject to stricter regulations.
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