Two more suppliers cleared to restart forced PPM installations

Eon and Tru Energy have been given the green light to restart forced installations of pre-payment meters (PPMs).

Ofgem has confirmed it has approved the two retailers’ applications to restart involuntary PPM installations, meaning five suppliers have now met the regulator’s new criteria to resume PPM warrant activity.

In January the regulator announced that Scottish Power, EDF and Octopus can now install PPMs with a warrant to recover customer debt, following a moratorium lasting almost a year.

At the time, Ofgem was heavily criticised for allowing forced PPM installations to resume before it has published its review of the practice.

It is still yet to publish the findings of the market compliance review into forced PPM installations, more than a year since it was launched.

When asked by Utility Week whether the results of the review would also now be published, Ofgem said that its “priority is making sure the MCR is robust, and the evidence collected is reviewed in detail”. It added that it expects to publish the results “in the coming months”.

The regulator further stressed that those retailers which have been allowed to restart forced installs have addressed any major concerns that were highlighted during the MCR process.

An Ofgem spokesperson said: “Protecting consumers is our number one priority. We’ve made clear that suppliers must exhaust all other options before considering forced installation of a prepayment meter, and consumers can help themselves by reaching out to their supplier as soon as possible if they think they won’t be able to pay their bill, so payment options can be discussed.

“Our rules on when, and how, a prepayment meter can be installed are clear and we won’t hesitate to take action if suppliers act irresponsibly.

“We will continue to work closely with consumer groups and suppliers to make sure households understand their rights when it comes to prepayment meters and will regularly review our rules to make sure they are working to protect the most vulnerable.

“We would also strongly encourage consumers to make sure their personal details and circumstances are up to date with their supplier, so they can be taken into consideration if or when payment problems arise.”

British Gas chief executive Chris O’Shea last week confirmed that the supplier has not yet asked Ofgem for permission to resume the forced installation of prepayment meters (PPMs), suggesting it is not the right time to do so.

The Centrica chief executive was speaking to Utility Week following the publication of the company’s results on 15 February in which the energy retailer posted a profit of £751 million.

Energy UK has previously stated that the level of debt owed to energy retailers stands at a record high of £3 billion. The trade association previously estimated that around £30 million a month was being added to the sector’s bad debt levels as a direct result of the forced PPM ban.