Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Energy

British Gas owner Centrica falls on new prepayment meter rules

Measures don't go far enough say poverty groups, which want a blanket ban on forced installations

Plans to clamp down on forced installations of pre-payment meters by energy companies have been criticised as too lenient after they stopped short of an outright ban.

Instead, companies will have to comply with a code of practice that will see body cameras worn by engineers and suppliers make at least ten attempts before forced entry plus carry out welfare visits beforehand.

Customers also will have greater leeway to clear debts while forced meter fittings will no longer be allowed for people aged 85 or over.

Forced prepayment meters become a national scandal after a Times investigation revealed British Gas contractors breaking down doors to gain entry.

According to recent government data, British Gas, Scottish Power and Ovo Energy made up 70% of all forced installations with more than 94,000 prepayment meters installed last year.

Chris O’Shea, British Gas owner Centrica’s chief executive, apologised for the behaviour of its agents after the story broke, saying there was "no excuse" for the actions.

All energy suppliers in England, Scotland and Wales have signed up to the code of conduct, but critics say it needs to be mandatory and not left to the discretion of suppliers, something that would require legislation.

Jonathan Brearley, head of energy regulator Ofgem and who announced the new guidelines today, has been heavily criticised for seemingly being unaware of what was going on.

In an interview with the BBC, he said Ofgem needed to balance the managing of debt by suppliers while protecting vulnerable customers.

"We cannot look at everything that suppliers do, so we cannot guarantee there will be no bad practice out there. But we have the ability to go deep into a company to see what is happening".

Under current rules, suppliers can also recoup any bad debts through higher bills for other customers.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK