A ban on the forced installation of prepayment meters by energy companies has been extended beyond the end of March, Ofgem has said.
The energy regulator’s chief executive, Jonathan Brearley, told MPs that suppliers would not resume the installations until a code of practice was published and Ofgem was satisfied it was being adhered to.
Ofgem – which covers England, Scotland and Wales – agreed with suppliers in February to suspend until the end of March the forced installation of meters under warrant, after a Times investigation showed debt agents at Arvato Financial Solutions ignored signs that British Gas customers were vulnerable and force-fitted meters.
Brearley told the business, energy and industrial strategy committee on Tuesday: “Our priority is making sure this industry gets its act in order. Therefore, they will not be restarting forced installation of prepayment meters at the end of March.”
MPs and campaigners have argued since late last year that energy firms should not be allowed to force-fit prepayment meters, and charities have raised concerns that many customers are unable to top up, leaving them without heat and power as a result. Prepayment meters are used by energy firms to recover debts.
Chris O’Shea, the chief executive of Centrica, which owns British Gas, told MPs on the committee that 300 customers had written to the energy supplier since the Times report, saying they had been moved on to prepayment meters incorrectly. “We’re looking into every one of those cases. If that’s the case, we’ll reverse it; we’ll make it right,” he said.
O’Shea said the firm would not restart forced installations until at least the end of April, when an internal investigation is expected to conclude. “Before we in British Gas
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