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Ofgem warns energy suppliers of tough action on new PPM rules

Ofgem has issued a warning to energy suppliers, cautioning them to adhere strictly to new prepayment meter (PPM) rules.

The directive emphasises the necessity for suppliers to treat customers fairly during the installation of involuntary prepayment meters, commonly known as ‘pay as you go’ meters.

Non-compliance with the rules may result in rigorous regulatory actions and fines, Ofgem has said.

The warning follows Ofgem’s confirmation that EDF, Octopus and ScottishPower have met the prescribed conditions, allowing them to resume involuntary PPM installations.

These conditions include conducting internal audits to identify wrongly installed PPMs, committing to reinstating non-prepayment methods and providing compensation.

The energy regulator asserts that suppliers must also furnish regular monitoring data to promptly identify any concerning trends related to involuntary PPM practices.

Ofgem underscores the importance of consumers reaching out to their suppliers if facing difficulties in paying their bills.

Tim Jarvis, Director General for Markets at Ofgem, said: “We’ve made clear that suppliers must exhaust all other options before considering forced installation of a PPM and consumers can help themselves by reaching out to their supplier as soon as possible if they think they won’t be able to pay their bill, so payment options can be discussed.

“Our rules on when, and how, a PPM can be installed are clear and we won’t hesitate to take action if suppliers act irresponsibly.”

Energy Live News
Energy Live News
This article first appeared on Energy Live News, an award winning news service. Their mission is to give you balanced news, analysis, commentary of energy from their dedicated team of quality journalists and production staff.
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