Thousands to Receive Payouts Over Forced Prepayment Meter Fittings

Tens of thousands of energy customers in the UK are set to receive compensation and have debts written off following a scandal involving the forced installation of prepayment meters. Energy companies are paying out more than £70 million in response to a review by the regulator, Ofgem, which found that suppliers had switched vulnerable customers to paying upfront without their agreement.

Affected customers could receive payments ranging from £40 to £1,000, depending on how they were treated by their energy supplier. Some individuals may have already received assistance or been contacted by their energy supplier. If not, customers do not need to take any action, as compensation will be paid directly into their accounts.

The scandal emerged two years ago during the peak of the cost-of-living crisis, exacerbated by rising energy prices following Russia’s invasion of Ukraine. It was revealed that energy firms were switching customers who struggled to pay their bills onto prepayment methods, either by remotely changing their smart meters or by entering homes to install new meters. The issue gained significant attention when agents for British Gas were found to have forcibly entered the homes of vulnerable individuals.

Ofgem’s intervention has led to these compensation measures, aiming to address the mistreatment of customers and prevent such practices in the future.