Call to allow government to block forced PPMs

Fuel poverty campaigners have called on the government to take a hands-on approach to forced prepayment meter (PPM) installations.

National Energy Action (NEA) calls for the energy secretary to have direct oversight of forced PPM installations with powers to block installs to sit within government instead of the regulator.

The NEA expresses support for Ofgem’s move to only allow forced installations of PPMs when numerous checks have been carried out, including a home visit, within its submission to the House of Commons Energy Security and Net Zero committee’s recently concluded inquiry into how the sector is preparing for high bills this winter.

However, while noting that Ofgem “eventually” stopped this practice, the response proposes that powers to block forced installations should sit with government, not the regulator.

“The secretary of state should be granted these powers in the future rather than having to ask Ofgem to step in for him [or her],” the report states.

Ofgem was criticised earlier this year for not cracking down on suppliers until newspaper investigations exposed widespread malpractice surrounding forced PPM installations.

It has since published a mandatory code of practice relating to forced PPM installations.

The NEA also proposes the introduction of a “help to repay” scheme, whereby suppliers would match the contribution of customers to pay off their debt on energy bills.

The NEA also raises its concerns with the committee about the government’s failure to fulfil the commitment in its Energy Security Plan, published earlier this year, to consult this summer on a fresh approach to protect consumers.

Describing it as “incredibly worrying” that no consultation has yet been published, given that April 2024 has been stated as the date for implementing the new retail market regime, it says: “There is a significant risk that these new protections will not be in place when they are needed. It is vital the consultation is published as soon as possible.”

And the fuel poverty charity calls on the cost of the supplier of last resort (SoLR) process for switching customers from failed to new suppliers should be recouped from general taxation rather than being applied to energy bills.

It says low-income families pay a disproportionate amount of SoLR costs, which amounted to £94 for every billpayer in the country last year.