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Ofgem has written to energy suppliers to raise concerns over the remote switching of smart meters to prepayment mode and remind them of their licence obligations.
In an open letter to the industry, the regulator’s director of retail Neil Lawrence said he had recently been made of “serious failings” concerning the treatment of vulnerable smart meters customers and warned it “will not hesitate to take further action if we continue to see these unacceptable practices continue.”
Lawrence said smart meters operating in credit mode have been remotely switched to prepayment mode “without full regard to the licence conditions, leading to serious detriment to these customers.”
“Most worryingly, some vulnerable consumers have been left off supply,” he added. “The cases shared are so concerning, and placed consumers at such risk, that we need to write to you to make you aware of the situation and remind you of your obligations.”
According to the supply licence, smart meters should not be switched to prepayment mode unless it is “safe and reasonably practicable” and without carrying out appropriate assessments, including to identify any vulnerability.
“The guidance to these assessments further sets out that following the remote switching of the smart meter, we expect suppliers to take proactive steps to ensure that it is safe and reasonably practicable for the consumer to stay in prepay mode, which could include monitoring of self-disconnection,” said Lawrence.
“Where the supplier becomes aware or has reason to believe that the smart meter being in prepay mode is no longer safe and reasonably practicable in all circumstances, then the supplier should make alternative arrangements.”
He said retailers must also provide notice of at least seven working days before switching a smart meter to prepayment mode, adding: “All suppliers should review their obligations and processes on smart prepayment meter practices as a matter of urgency, including ensuring that all customer service representatives are briefed on the severity of the impact poor practices can have on customers.”
“We will be working closely with consumer groups to monitor consumer outcomes in this area, including enhanced reporting from our tripartite engagement with Citizens Advice and Ombudsman,” he concluded.
“We will not hesitate to take further action if we continue to see these unacceptable practices continue.”
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