Business secretary demands energy firms halt forced fitting of prepayment meters

Grant Shapps has vowed to ‘name and shame’ the worst energy suppliers

Business secretary Grant Shapps has called on energy companies to do more to avoid forcibly installing prepayment meters in households struggling to pay their bills.

In a letter to energy suppliers, Mr Shapps said: "Suppliers are clearly jumping the gun and moving at-risk customers onto prepayment meters before offering them the support they are entitled to."

He added: "I am deeply concerned to see reports of customers being switched to prepayment meters against their will, with some disconnected from supply - and quite literally left in the dark."

There are particular concerns about the low number of vouchers being redeemed under the government’s energy bills support scheme. The government wants to see energy suppliers make greater efforts to ensure vulnerable households have their charges reduced.

Prepayment meters require users to pay for energy before consuming it. They are usually installed when consumers are in debt to energy suppliers, and the suppliers suspect the consumers will struggle to pay this off.

The use of prepayment meters has risen sharply amid soaring bills, and has been widely criticised. Customers on prepayment meters pay higher rates for their energy than customers on other contracts. People already in debt often self-disconnect their meters, and live without energy.

The government’s new initiative will try to reduce the spiking installation rates. A key tactic will be naming and shaming suppliers failing to provide customers with proper support.

Business Secretary Grant Shapps (PA Wire)

The measures include calling on suppliers to decrease the use of prepayment meters, requiring suppliers to publish data on how many prepayment meters they have applied to the courts to install, and requiring suppliers to publish data on the redemption rates of energy bills support scheme vouchers.

The government will also launch a public information campaign about the energy bills support scheme aimed at the most vulnerable consumers. Lastly, the government will work with Ofgem to protect customers and make sure suppliers are following the rules.

Reacting to the government's initiative Gillian Cooper, head of energy policy for Citizens Advice, said: "We welcome the government’s call for energy suppliers to stop forcing people onto prepayment meters. Millions of people are being left in cold, dark and damp homes because they can’t afford to top up their meter. No one should be forced to live like this."

However, she added: “It’s now up to suppliers to do the right thing and end this practice. If they don’t, the government must step in with stronger action. It’s also vital further protections are brought in for people already using prepayment meters.”

The government has stopped short of banning prepayment meters fearing energy suppliers might react by increasing bailiff action against customers in debt.