Energy bills: Prepayment meter experiences sought in review

People are being asked to submit "candid and frank" accounts of their experiences of moving to an energy prepayment meter, as part of a review.

The way prepayment meters are handled is under the spotlight after it emerged that agents for British Gas had broken into vulnerable people's homes to force-fit meters.

Now the regulator, Ofgem, wants to hear directly from customers.

"We must work hand-in-glove with consumer groups to analyse and act on customers' experiences, not only what suppliers tell us. We need customers to give us frank and candid feedback about their experience of being moved to prepayment meters," said Jonathan Brearley, Ofgem chief executive.

"Our rules are clear that installing forced prepayment meters must be a last resort where all other options have been exhausted. We won't hesitate to take tough enforcement action if we find suppliers have not followed the rules."

While some households choose to have a prepayment meter - as it allows people to pay as they go - others have been forced into having them if they fall behind on their bills, while some inherit a meter from a previous tenant or property owner.

The cost per unit of energy is higher than direct debit, because of the costs involved for suppliers. There are about four million homes with prepayment meters in the UK.

After it emerged that break-ins were taking place to force-fit meters, Ofgem asked suppliers to enact a six-week pause on all forced installations until the end of March.

The regulator launched its review, and said that any suppliers who discovered wrongdoing in their own business should compensate affected customers, without waiting for the results of the inquiry.

Dame Clare Moriarty, chief executive of Citizens Advice, said: "Force-fitting prepayment meters can have devastating consequences.

"We're working with Ofgem to make sure people's experiences are heard. Through sharing their experiences, people can help expose wrongdoing and help the regulator develop new protections so this never happens again."

But Energy UK, which represents firms, claims an amnesty could mean other households would pick up the cost.