Ofgem will widen the age range of vulnerable customers who should not have a prepayment meter (PPM) forcefully installed through an amendment to the new code of practice, Utility Week understands.
The energy regulator has been consulting on proposals to make the voluntary code of practice surrounding PPM customer protections a compulsory part of suppliers’ licence conditions.
The code was introduced in April 2023 following the explosive allegations against British Gas concerning the way it forcefully installed PPMs. It aims to ensure vulnerable customers are protected when struggling to pay their bills and faced with an involuntary PPM.
The current voluntary code stipulates that energy retailers “should not install a PPM if, within the household, there is no one with ability to access, operate and/or top up the meter due to physical or mental incapacity or for technical reasons”.
This includes where households have a “very elderly occupant” aged over 85 and without support in the house.
Additionally the code provides protection for customers considered at medium risk, where further assessment is required “on a case-by-case basis”.
These include children under the age of five and elderly people aged over 75.
Yet industry sources have confirmed that they are expecting the final version of the code to go further than the proposals consulted on. In particular, changes are likely to include a wider age range. No details have emerged yet about this, however, with an announcement on the PPM code of practice expected next week.
Utility Week has contacted Ofgem for comment and while a spokesperson confirmed an announcement will be made in due course, they declined to comment further.
Involuntary PPM installations have been a major source of contention for the energy retail sector this year, following the allegations reported by The Times after an undercover investigation which claimed Arvato agents working on behalf of British Gas were flouting industry rules when installing PPMs in the homes of people with disabilities and mental health issues.
The findings of the investigation were widely condemned at the time, with former energy secretary Grant Shapps saying he was “horrified” and that the practices were “abhorrent”, while Ofgem launched an investigation into the matter.
Shortly after the revelations were made a moratorium on forced PPM installations was announced, with suppliers no longer pursuing court warrants to install the meters in the homes of their customers.
In May, the ban was revealed to be adding around £30 million a month to the sector’s bad debt levels, with mounting concerns about the impact this will have on the industry.
For more inspiration on improving customer service, sign up for our webinar with Capita. And look out for Utility Week / ServiceNow’s forthcoming research report on employee engagement.