Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Not Addressed
Concerns persist over forced installation of prepayment meters by energy suppliers.
Conclusion
We asked witnesses about recent press coverage that had exposed the practice of some energy suppliers forcibly installing prepayment meters in people’s homes. Ofgem banned British Gas from forced installation of prepayment meters as of February 2023 and made a voluntary agreement with other energy suppliers which lasts until March 2023. Citizens Advice told us it was concerned about prepayment customers as the support schemes and the moratorium preventing forced installation end in April 2023.33 The Department told us it believed forced installations were well outside the rules that were in place for the treatment of vulnerable customers. The Department told us that the Secretary of State had written to Ofgem to look into this issue and that if it had been aware of the specifics of how British Gas was handling these cases, it would have asked Ofgem to intervene earlier.34 Fraud and error risks
Government Response Summary
The government agrees with the conclusion and states the recommendation is implemented, detailing its monitoring and efforts to improve Energy Bills Support Scheme voucher redemption rates for prepayment meter customers. However, the response does not address the core concern raised in the conclusion regarding forced installation of prepayment meters or the ending of support schemes.
Government Response
Not Addressed
HM Government
Not Addressed
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The government has closely monitored Energy Bills Support Scheme (EBSS) voucher payments to traditional prepayment meter customers in Great Britain and published data regularly. Supplier data has provided detailed geographical understanding of areas with low voucher up-take. Lowest redemption is seen in urban areas, with 9 out of the 10 local authority areas with lowest up-take in London. Postcode sector level data provides insight into the types of households likely to be found in each area. A higher proportion of customers with unredeemed vouchers live in socially rented terraced properties or flats, or in primarily ethnic and multicultural areas. 2.3 This understanding enabled focused communications efforts on areas and at demographics with most impact. Government and supplier communications campaigns have encouraged voucher up-take throughout delivery. 2.4 A further, coordinated media campaign was launched at the end of May. ‘National claim your voucher day’ was supported by suppliers, charities and consumer groups. Voucher redemption rates improved from 76% at the end of January 2023 to 85% at the end of May 2023. 2.5 In Northern Ireland, support was delivered through a single cash payment, due to the high usage of heating oil. Thus, scheme design and the nature of the electricity market meant that voucher redemption has been less of an issue and rates rapidly rose to in excess of 90% shortly after launch. On that basis, additional specific analysis has not been conducted.