Ofgem told to set up PPM customer reporting channel

Ofgem has accepted Grant Shapps’ call to set up a channel for households to pass on their own feedback on how they are being treated by suppliers rather than relying on firms to share such information.

In a statement issued on Friday (10 February), after receiving feedback from suppliers about remedial action for customers who had had prepayment meters (PPMs) wrongfully installed, the secretary of state for energy security and net zero said he had been angered that some companies had provided only “half the picture” on the steps they are taking.

According to the statement from the Department for Business, Energy & Industrial Strategy (BEIS), all suppliers responded by Shapps’ Wednesday deadline for reporting back and committing to end the practice of forcible installations of PPMs.

However the department said that while several set out redress that would be provided to customers, such as providing compensation or replacing a PPM with a credit meter, a number failed to address the question.

Shapps said he had been angered that some letters back to him only offered “half the picture” with details missing from several replies on how “wrongdoings” will be fixed.

He has told Ofgem, which is carrying out a review into the use of PPMs, that the suppliers’ responses are not good enough.

Shapps has called on the regulator to improve its oversight of suppliers by setting up a new customer reporting system for households to pass on their own stories of how they are being treated, especially those who are vulnerable.

The regulator has confirmed that it will look at doing this by taking steps, such as engaging more with charities and other groups that represent consumers.

Shapps also said he had told British Gas chief executive Chris O’Shea at a meeting that he must take “urgent” steps to repair the damage done to the company’s reputation and outline the role he will personally take to fix these cultural issues, exposed by last week’s Times revelations about how agents working for his company broke into customers’ homes to fit PPMs.

O’Shea was also told that vulnerable, mistreated customers need to be identified and redress provided with the energy secretary monitoring matters “extremely closely” to make sure this happens.

Shapps said: “People will have understandably been shocked and appalled at how vulnerable people’s homes have been invaded and prepayment meters installed against their wishes – and suppliers are only at the beginning of correcting this abhorrent behaviour.

“Since those reports were published, I have demanded answers from suppliers, and Ofgem: all suppliers are now halting forced installations, magistrates are no longer signing off warrant applications and Ofgem are upping their game when it comes to their reviews.

“But I am angered by the fact some have so freely moved vulnerable customers onto prepayment meters, without a proper plan to take remedial action where there has been a breach of the rules. So, I have only received half the picture as it still doesn’t include enough action to offer redress to those who have been so appallingly treated.

“This is simply not good enough and absolutely needs to be addressed by Ofgem’s review – I want to see plans from suppliers actually acted upon – and customers given the service they have a right to expect.”

Earlier this week, magistrates’ courts were told to stop issuing warrants for forced PPM installations.