Forced prepayment meter installation compensation figures a ‘drop in the ocean’
Early compensation figures for the forced installation of prepayment meters are a “drop in the ocean” compared to the scale of the problem, a charity has said.
Figures from Ofgem today reveal that 1,502 customers have received compensation, totalling £342,450. Suppliers are planning more payments of around £200,000 for 1,000 more customers.
However, previous estimates from Citizens Advice Scotland (CAS) found that in Scotland alone, around 23,936 people were forced onto an electric prepayment meter against their wishes, with around 12,000 forced onto a prepayment meter for gas.
Companies have also used a ‘back door’ approach, but switching smart meters into pay-as-you-go meters. In these cases, around 17,952 have seen their meter changed without their consent and around 12,000 for gas.
CAS energy spokesperson Dr Matthew Lee said: “It is very welcome that Ofgem and suppliers are working together to get compensation to people who wrongly had prepayment meters installed against their wishes.
“However, these early figures – totalling 1,502 across the UK – are potentially a drop in the ocean compared to the scale of the problem.
“In Scotland alone, we estimate tens of thousands of people were forced onto pay-as-you-go energy against their wishes.
“The forced installation of these meters should be banned permanently. For many people it means energy is a luxury at the start of the month, and then something they have to ration or even go without the further away they get from pay day.”