Energy supplier installing prepayment meter for arrears

Legal position:
Under the law of England and Wales, energy suppliers are regulated by Ofgem and must comply with the terms of their licences, as well as relevant legislation such as the Electricity Act 1989 and the Gas Act 1986. These allow suppliers to install a prepayment meter (PPM) in certain circumstances, including where a customer has arrears on their energy bill, but this is subject to strict conditions and safeguards.

Suppliers cannot simply install a PPM without following proper procedures. Following recent controversies and Ofgem's interventions in 2023, an updated Code of Practice on involuntary PPM installations now applies to all domestic suppliers. This code requires suppliers to exhaust all reasonable alternatives before considering a PPM, such as offering affordable repayment plans, debt advice, or emergency credit. They must also make at least 10 attempts to contact the customer and conduct a welfare assessment to identify vulnerabilities.

Importantly, PPMs cannot be installed involuntarily in households deemed "highest risk," including those with residents who are over 85 (unless they consent), have severe health conditions requiring continuous energy supply (e.g., for medical equipment), or include children under 2 years old. Other vulnerabilities, such as mental health issues or disabilities, must also be carefully considered, and suppliers are prohibited from proceeding if it would exacerbate hardship.

If a supplier wishes to install a PPM against your wishes, they typically need your cooperation or, failing that, a warrant from a magistrates' court to enter the property. However, the code emphasises that forced installations should be a last resort, and Ofgem can impose penalties on suppliers who breach these rules.

This position may depend on specific facts, such as the amount of arrears, your household circumstances, the type of meter (e.g., smart or traditional), and whether you have a smart meter that could be remotely switched to prepayment mode without physical entry. Recent procedural changes mean that even for smart meters, suppliers must follow the code's requirements before switching modes.

Practical options:
If you are facing arrears and a supplier is proposing a PPM, I recommend considering the following steps in this order to address the situation effectively, taking into account potential costs, stress, and the need for evidence:

1. Contact your supplier immediately to discuss your arrears and explore alternatives, such as a tailored repayment plan or hardship funds. Provide details of any vulnerabilities in your household to invoke the code's protections.

2. Seek free debt advice from organisations like Citizens Advice, StepChange, or National Debtline, who can help negotiate with the supplier and assess if you qualify for exemptions.

3. If the supplier proceeds despite your objections, keep records of all communications and consider complaining formally to the supplier first, then escalating to the Energy Ombudsman if unresolved after eight weeks. The Ombudsman can investigate breaches of the code and may order compensation or prevent the installation.

4. Only as a last resort, if a warrant is sought, you could attend the court hearing to present your case, though this involves some risk and potential costs.

Court action is rarely the best initial step due to delays and uncertainty, and focusing on informal resolution or Ombudsman routes is often more practical. If your query relates to a jurisdiction outside England and Wales, please note that this advice is specific to that area; for other locations, I suggest consulting our worldwide service, Atlas.