Ofgem ‘asleep at the wheel’ while suppliers fitted prepayment meters

Britain’s power regulator has been accused of being “asleep on the wheel” in its monitoring of electrical energy and fuel suppliers discovered to have been utilizing court docket warrants to put in prepayment meters in clients’ houses.

The behaviour of power firms has come below contemporary scrutiny following allegations on Thursday that debt assortment brokers appearing on behalf of British Fuel, the most important provider, broke into the homes of vulnerable customers to suit costly prepayment units.

It’s estimated that greater than 4mn clients use prepayment meters. Critics say their use has exacerbated the price of residing disaster and added to the squeeze on weak folks. Sometimes, pre-pay clients pay extra for his or her power than those that pay by direct debit and so they have entry to fewer tariffs.

Power consultants on Friday questioned Ofgem’s position in overseeing power teams, after it twice ranked British Fuel — which serves about 7.5mn shoppers — prime for supporting households in problem with their power payments or deemed weak.

In its first evaluate published in September, the watchdog mentioned British Fuel was the one provider to have had “no important points” with its assist for patrons in fee problem.

In its second evaluate into assist for weak households, printed in November, Ofgem gave British Fuel and 6 rivals the highest ranking of solely “minor weaknesses”.

The regulator on Thursday ordered British Fuel to instantly droop forcibly becoming prepayment meters in clients’ houses following an investigation by The Occasions newspaper.

It additionally requested different suppliers to desist from such actions pending probes into the broader market and British Fuel, which has apologised for “fully unacceptable” behaviours.

Ofgem guidelines stipulate that suppliers can neither force-fit a prepayment meter for folks in very weak conditions nor use warrants on individuals who would “discover the expertise very traumatic”.

However consultants on Friday identified that gasoline poverty voice campaigners had voiced concern final summer season, citing the sharp rise within the variety of court docket warrants sought by suppliers and a Residents Recommendation name in September for a moratorium on installations.

Adam Bell, head of coverage on the consultancy Stonehaven and former head of power technique on the enterprise division, mentioned the regulator had been “asleep on the wheel”.

“Realistically Ofgem ought to have began monitoring [prepayment meter installations] on the outset of the [energy price] disaster,” he mentioned.

“What they need to have performed is discover the numbers creeping up, requested if that will imply something for the court docket system — on which getting a warrant for forcible entry depends — and if that meant something for the standard of choices that had been being made.”

Simon Francis of the Finish Gas Poverty Coalition, a gaggle of commerce unions, charities and native authorities, mentioned Ofgem had taken eight months to behave on an issue that had “ramped up” and “had a dangerous influence on numerous lives”.

Ofgem insisted it at all times acted “on proof given to us by the general public, whistleblowers, client teams and referrals from the impartial power ombudsman”. However it mentioned it lacked “the authorized energy, remit or funds to arrange undercover investigations into frontline set up groups”.

It added that its probes would “study intimately” the “crucial situation” of compelled prepayment meter set up.

Caroline Flint, a former Labour minister who’s now an adviser to the federal government on gasoline poverty, referred to as for a evaluate into the follow of forcibly becoming prepayment meters.

“I believe power firms have been given the good thing about the doubt on this for too lengthy and now I believe it’s proper to have this moratorium,” she instructed the BBC on Friday. “It’s [also] proper to contemplate whether or not or not compelled set up of meters ought to occur in any respect.”

Gas poverty charities have instructed the federal government ought to study the magistrates courts’ position in issuing warrants to power firms, after the i newspaper alleged they had been typically granted in “private back rooms”.