Ofgem is to extend protections for prepayment meter (PPM) customers who have had their meter installed under warrant, reflecting the extended smart meter rollout deadline.
Protections came into force in January 2018 to cover customers who had a PPM installed under warrant by their supplier. Retailers can only install PPMs by force as a last resort to recover debt.
The protections for such customers include a universal cap of £150 on the amount suppliers can charge for all costs in relation to installing a PPM under warrant and prohibitions on the use of, or ability to charge any costs for warrants in relation to consumers in certain vulnerable situations.
They also include a proportionality principle covering:
- The actions of suppliers when exercising a warrant to install a PPM
- The costs and actions of suppliers for all customers in the debt recovery process
These protections are subject to a sunset clause and are due to expire on 31 December this year, in line with the original smart meter rollout deadline. This is mainly because the physical installation of a PPM under warrant is not required when consumers have smart meters (which can be switched from credit to prepayment mode remotely).
Ofgem has today (27 November) launched a consultation setting out its proposal to extend these in line with the revised four-year smart meter rollout framework to 30 June 2025.
The regulator added that while there is no requirement for it to consult on extending the protections, it believes doing so is good practice due to the length of the proposed extension.
The consultation will close on 9 December.