Grant Shapps has called on UK energy bosses to explain what remedial action they are taking to deal with customers who wrongly had prepayment meters installed in their homes, warning that the regulator has called on suppliers to Had run the risk of having the wool pulled over his eyes.
Energy regulator Ofgem last week ordered suppliers to suspend the practice of forced meter installation following a report in the Times newspaper.
An undercover investigation by the paper found that British Gas third-party contractor Arvato Financial Solutions was installing meters in the homes of vulnerable customers.
Shapps, the business secretary, has asked energy suppliers to report to his department by Tuesday, outlining their plans to support affected customers through measures such as compensation.
Shapps has also urged Ofgem to set up a new reporting system to allow customers to record their experience of working with energy companies and called on the regulator to strengthen its review structures.
British Gas was awarded the top ranking by Ofgem in two reviews carried out in the second half of last year, which assessed how the supplier was treating customers who were considered vulnerable or who were unable to pay their energy bills. were struggling to do.
Shapps said, “I fear that vulnerable customers struggling with their energy bills have invaded their homes and installed prepayment meters when suppliers have a clear duty to provide them with assistance.” “They need to refocus their efforts on their consumers, the British public, who are at the receiving end of this abhorrent behaviour.
“I am also concerned that the regulator is too easily pulling the wool over their eyes by taking at face value what the energy companies are telling them. They should also listen to customers to ensure that vulnerable consumers are not treated like this again.”
Ofgem acknowledged that “the picture presented by companies may not accurately reflect what is experienced by customers on the ground”.
Consumer groups have warned in recent months about a growing number of suppliers imposing expensive prepayment meters on customers with arrears. Consumer organizations such as Citizens Advice have called for a ban on the practice until new protections are introduced for customers.
Ofgem has launched a major market-wide review of prepayment meter installations which will look at potential breaches of licenses driving the growth. Earlier this week, Jonathan Brearley, Ofgem’s chief executive, said he had asked suppliers to review their use of court warrants. “Suppliers need to assure us that the process of moving customers to PPM is in line with all Ofgem regulations and until this is done, we have asked them to stop forced installations,” he said.
Chris O’Shea, chief executive of British gas owner Centrica, said the company would suspend the practice and apologized for the “deeply troubling” allegations.
Additional reporting by Nathalie Thomas
