Update on Ofgem’s Market Compliance Review into Involuntary Prepayment Meter Practices

Last year, Ofgem initiated a comprehensive Market Compliance Review (MCR) aimed at addressing the issue of involuntary prepayment meter practices within the energy sector. The primary focus of this review was to prevent the wrongful installations of involuntary prepayment meters, ensuring fair treatment for energy consumers across the board.

In a significant development, new regulations were introduced in November 2023, integrated into the standard gas and electricity licences. These regulations are binding for all energy suppliers, mandating strict adherence to prescribed guidelines and practices.

As part of the review process, energy suppliers unanimously agreed to halt involuntary installations and remote switches. Furthermore, they have actively collaborated with Ofgem throughout the review, undertaking proactive assessments of customers who had prepayment meters installed without their consent. This evaluation spanned the period from January 1, 2022, to January 31, 2023, with the objective of identifying individuals eligible for compensation.

Initial data provided by energy suppliers indicate that 1,502 affected customers have already received compensation, totalling £342,450. Additionally, suppliers are in the process of preparing further compensatory payments, amounting to approximately £200,000, which will benefit an additional 1,000 customers.

Compensation for involuntary installation of prepayment meters, 1 January 2022 to 31 January 2023 | Ofgem