Energy companies in the UK are being forced to pay out more than £70m in compensation to energy customers. This follows a review by Ofgem, into the practices of companies who switched customers to prepay meters without agreement.
Many customers who had fallen behind on their energy bills had to pay upfront for the installation of the prepay meters, often leaving them short for other essential goods & services such as food or medical treatments.
As a result, tens of thousands of energy customers are to receive payouts of up to €1,000 as a result of the scandal.
The scandal came to the attention of Ofgem 2 years ago at the peak of the cost of living crisis when energy prices spiked following the invasion of Ukraine by Russia. During the investigation it came to light that the energy companies were targeting customers who struggled to pay their bills. Customers with smart meters were switched to prepay mode remotely but many customers had new meters installed by the companies without consent. It also emerged during the investigation that sometimes agents forced their way in to the homes of vulnerable people.
In one case, a man who lost his job and was in debt of only £160 to the energy companies was forced into the installation of the prepaid meter. The energy company brought police and locksmiths to the home and charged the customer £400 for the services of the police & locksmith.
The review found that energy companies "fell short of required standards" in the way they had treated their customers. The practice has now been fully suspended by the energy regulator.
