THOUSANDS of energy customers who had prepayment energy meters (PPMs) force-fitted are to receive compensation or have their debts written off, Ofgem has said.
The regulator announced that eight companies will hand out compensation and support after a review into consumers struggling with energy bills who were forced to have pay-as-you-go meters installed.
Ofgem said suppliers have committed to pay both additional compensation where it is due, and in some cases write off some energy debt of customers who had an involuntary PPM installed during the assessment period of January 1, 2022, to January 31, 2023.
Suppliers will pay £5.6 million in compensation – using the guidelines set out by Ofgem – to 40,000 customers who had an involuntary PPM installed during the assessment period.
Suppliers will also write off a further £13 million of debt from customers who had an involuntary PPM during the assessment period.
This comes on top of £55 million of financial support provided directly to affected consumers by suppliers prior to the completion of the review in the form of hardship payments and debt write-off, the regulator said.
Customers identified as having had a PPM wrongly installed or where processes were not followed adequately between January 1 2022 and January 31 2023 will be contacted by their suppliers, and do not need to take action.
OVO has also confirmed it will pay compensation to customers in line with the guidelines developed by Ofgem.
How do I check I am eligible for compensation?
You can check if your energy provider has agreed to the scheme (details below), but you do not have to take any direct action.
Eligible customers could receive payments starting at £40, rising to £250 or £500, depending on the way they were treated by their energy supplier, or where processes were not followed adequately.
Ofgem said the £1000 payments were for customers who had faced "inappropriate installation".
Some customers may already have received help, or have been contacted by their energy supplier. If not, Ofgem said compensation would be paid directly into customer accounts.
Which companies have agreed to the compensation scheme?
- Scottish Power
- EDF
- E.ON
- Utility Warehouse
- Good Energy
- TruEnergy
- Ecotricity
What has Citizens Advice said?
Citizens Advice Scotland has responded to Ofgem’s announcement of compensation for people who have had pre-payment meters (PPMs) forcibly installed.
CAS Director of Impact David Hilferty said: “This is welcome news. We have always opposed forced installations as they take away people’s choice, pushing them to pay money upfront which they often can’t afford.
“Our network has seen many distressing cases over the years of people who have been forced to disconnect their heating supply or go into debt as a result of this, so it’s right that they should be compensated.
“What’s important now is that suppliers deliver this compensation quickly and do the right thing for those who have experienced unnecessary harm.”
