National Energy Action has urged Ofgem to expedite its work to introduce new safeguards for prepayment meter customers, saying the measures should be implemented by the beginning of December to ensure consumers are protected in the event of another coronavirus lockdown.
Back in June, Ofgem issued a consultation on its final proposals for improving support for prepayment meter (PPM) customers forced to ration their energy due to poverty. The regulator proposed to introduce new requirements for suppliers to offer their PPM customers emergency and friendly-hours credit and take “all reasonable steps” to identify those that are self-disconnecting.
In its response to the consultation, National Energy Action (NEA) welcomed the measures warmly, saying they will “undoubtedly have a positive impact on reducing the number of customers that self-disconnect and self-ration.” However, the charity said the reforms, which were briefly put on hold when the pandemic hit in the spring, should be brought into effect by the beginning of December rather than the end of the year as currently proposed.
The NEA said it is now “entirely foreseeable” that there will be a second wave of coronavirus infections and that there will be corresponding lockdowns at either the national or local level: “These proposals have increased impact in such a situation, so having them in place as early as possible to ensure give the best chance that their existence intersects with a second wave is important.”
Ofgem would need to make a final decision by 6 October, giving the regulator six weeks to consider the responses to the consultation following its recent closure on 24 August.
The NEA said this timetable seems achievable, particularly when compared to some of the other work being undertaken by Ofgem, such as its supplier license review. It said the safeguards for PPM customers are more pressing, overdue and should be given priority if there is competition for resources.
For similar reasons, the charity said all customers who are unable to access emergency credit due to technical barriers should be offered a smart meter “as a matter of urgency”.
“It should not just be one of a suite of options, but a first port of call that suppliers should proactively pursue,” the organisation explained. “Customers without these functions have suffered considerable detriment throughout the lockdown, facing stark choices, for example between breaking shielding guidelines by leaving the house and entering a shop to top up, or running out of credit on their meter and doing without energy.”
It continued: “Whilst just six months ago asking millions of households to stay inside for 12 weeks was inconceivable, a repeat of this it is now within the realms of possibility, even if done at a local level as part of a coronavirus response. This scenario should therefore be well understood, and suppliers should act to prepare for them.
“Targeting of legacy prepayment meters without credit functions for smart upgrades is essential leading up to winter, and that Ofgem should not wait until the result of this consultation to direct suppliers to do so.”
It additionally called for Ofgem to obligate suppliers to report the number of households they have identified as a self-disconnecting on a regular basis to track the effectiveness of the measures being introduced.