Energy UK responds to new prepayment Code of Practice

Energy UK has today welcomed a new Code of Practice, agreed between Ofgem and all British energy suppliers, which sets out clear guidelines to further protect vulnerable customers when making involuntary installations of prepayment meters. Read our full press release here.

Dhara Vyas, Energy UK’s Deputy Chief Executive, said:

“While involuntary PPM installations are necessary to prevent debt building up further and to minimise additional costs for all customers, the new Code of Practice should give reassurance that it will be done only as a last resort, with the proper consideration and support, and only in circumstances where it is safe to do so.

“Bad debt within the energy industry is increasing to unsustainable levels. As Ofgem acknowledges, the new process will lead to fewer installations by warrant and so it’s likely customer debt will increase even further as a result – as well as from the current pause – which will need to be addressed.

“While it’s very welcome that those on prepayment meters will now pay the same rates as others, this issue also underlines how important it is to make bills affordable for all customers in future. As well as protecting customers from high prices through a combination of targeted financial support – such as a social tariff – access to energy efficiency measures and overdue retail market reform, building more cheap, domestic, renewable energy will help to bring down prices in the long term.”