Labour leader Sir Keir Starmer has been vocal about the use of prepayment meters in the past
Labour has secured a landslide victory in the general election, installing Sir Kier Starmer as the new Prime Minister of the UK. This change in power signals potential shifts in policies that could directly impact the economy and personal finance of consumers.
With the cost of living continuing to rise, placing significant financial burden on the UK’s most vulnerable families, those grappling with escalating energy bills may find themselves in tougher situations should they be compelled to have a prepayment meter forcibly fitted in their homes.
These meters are installed when a customer accumulates substantial debt with their energy provider. The primary problem with these units is that they cut off power supply to the household when no payment has been made.
A code of practice proposed by energy watchdog Ofgem last year heightened protection for vulnerable households by stipulating that suppliers must make a minimum of 10 attempts to contact a customer and carry out a welfare check prior to installing the meter.
Labour’s stance on forced pre-payment meters
Sir Kier Starmer, along with other high-ranking members of the Labour Party, has consistently opposed this industry practice. The freshly appointed Prime Minister had previously asserted to Money Saving Expert that his party aims to prevent pre-payment meters being “forced” upon vulnerable households.
Labour MPs, alongside charities and consumer groups, made a stand in January 2023, calling for a halt on court warrants that allow forced entry to install prepayment meters. The Labour Party’s own website echoes this sentiment, pushing for an overhaul of the UK’s energy system and rejecting the compulsory fitting of these meters.
The site states: “Labour will ensure a much tougher system of regulation that puts consumers first and attracts the investment needed to cut bills. Too much of the burden of the bill is on standing charges and we will work with the regulator to reduce them.”
“We will strengthen the regulator to ensure it can hold companies to account for wrongdoing, require higher standards of performance, and ensure there is automatic customer compensation for failure.”
Worried about being switched to a prepayment meter?
If you’re concerned about your energy supplier forcing a prepayment meter on you, it’s crucial to know Ofgem’s regulations to make sure they play by the rules. Before a supplier can force a prepayment meter installation, they must:
- make at least 10 attempts to contact a customer before a prepayment meter is installed
- carry out a site welfare visit before a prepayment meter is installed
- refrain from all involuntary installations for the highest risk customers
- audio or body cameras must be worn by the lead supplier representative present on all warrant installations or site welfare visits to check for vulnerabilities ahead of an involuntary installation or remote mode switch. All audio and footage will be available for audit
- give a £30 credit per meter (or equivalent non-disconnection period) on all warrant installations and remote switches as a short-term credit or measure to remove the risk of customers going off supply at the point of prepayment meter installation
- re-assess the case once a customer has repaid debts owed.
Full details of the rules can be found here.
According to Citizens Advice, suppliers cannot forcibly install a meter in some circumstances if:
- You’re aged 75 or older
- If you live with young children
- If you’re disabled or have a health condition
- If you can’t afford to top up
- If you can’t get to or top up your meter
Your first point of call to dispute a forced installation is to contact your supplier and explain your situation. In this situation, your supplier should see what support they can offer.
During this conversation you should tell them any factor which might make things more difficult for you in the event you have a prepayment meter installed in your home.
You are also allowed to get a break from being contacted by your energy supplier through the Breathing Space scheme. Under this scheme, you can have 60 days where companies you’re in debt with can’t contact you, take action to make you pay, or add interest and charges to the debt.
Full details on the Breathing Space scheme can be found here.
