Energy UK responds to Ofgem’s announcement on the Code of Practice for involuntary installation of prepayment meters

Responding to Ofgem’s announcement on the Code of Practice for involuntary installation of prepayment meters, Dhara Vyas, Energy UK’s Deputy Chief Executive, said:

“This [inclusion of the Code of Practice in suppliers’ licences] confirms that involuntary PPM installations will be done as a last resort, with the proper consideration and support, and only in circumstances where it is safe to do so.

“Such installations will still play an important role in enabling suppliers to meet their responsibility to try and prevent customers falling further into arrears – as well as limiting the build-up of bad debt overall, which is ultimately recouped from all customer bills.

“Ofgem has previously acknowledged that the new process will result in fewer installations and an increase in consumer debt – in addition to that built up during the current pause. The extension of the exempt categories is likely to further increase the level of bad debt. It underlines the urgency of tackling the growing affordability crisis and the importance of stopping debts building up in the first instance.      

“This winter is going to be very difficult for millions of energy customers. We continue to urge the Government to introduce targeted support for this winter, to press ahead with developing targeted financial support – such as a social tariff – for those customers most in need as well as improving the energy efficiency of as many homes as possible to cut bills permanently.”