Ofgem prepayment meter action welcomed but it could go further, says Age Scotland

The national charity for older people has backed moves to crack down on the installation of prepayment energy meters, but believes more could be done to better safeguard older and more vulnerable people.

Age Scotland has welcomed action from Ofgem, as well as a five-point plan outlined by Business and Energy Secretary, Grant Shapps, to end the mistreatment of energy customers.

Age Scotland’s Chief Executive, Mark O’Donnell, said:

“At a time when so many older people are struggling with soaring energy bills, action on this issue can’t come quickly enough, and we are glad to see things progressing in a positive direction.

“We welcome the news that Ofgem is engaging with energy suppliers to consider alternatives to what should always be a last resort action. However, encouraging change on a voluntary basis may not be enough. We believe that going one step further and making it a statutory requirement for energy suppliers to exhaust all other means of action before installing a prepayment meter, or by including harsher penalties for companies found to be failing to do so, would prove more effective in safeguarding vulnerable customers.

“Gaining more data on prepayment meter installation and applications will also help improve understanding of which households need the most support when developing future energy policies.

“It is often people on the lowest incomes who have prepayment meters and are then paying the most for their energy, at increased risk of fuel poverty and can have their supply cut off when they run out of cash. Instead of installing prepayment meters, often without just cause or advance warning, suppliers must do much more to identify and support vulnerable customers.”