Prepaid energy meter costs slammed by Ofgem

Energy retailers charging exorbitant amounts for customers to have prepayment energy meters installed were slammed by the industry regulator on Wednesday.

Customers who fall into debt are often ordered to have the meters installed, after the retailer applies to a magistrates court.

Around 4.5 million consumers currently use the prepayment meters, with retailers usually charging £400 - but often up to £900 including court costs - to have them installed.

Regulator Ofgem said it believes the maximum fee should be between £100 and £150, with any charges waived for customers with health issues or in financial hardship.

“It's deeply unfair that struggling customers get hit with high warrant costs when they're already grappling with debt, doubly penalising them,” said Ofgem senior partner for consumers and competition Rachel Fletcher.

“Where they are needed, our proposals will protect customers by limiting prepayment meter warrant charges for all customers and removing them for the most vulnerable.”

Particularly vulnerable customers were also looking forward to a price cap on tariffs for prepayment customers, set to be introduced in April 2017 at the behest of the Competition and Markets Authority.

Ofgem said it will consult on its meter charges proposal until 9 November.