Major energy suppliers hand out £1,000s in compensation over energy meter scandal
MAJOR energy suppliers will hand out £1000,'s in compensation following an energy meter scandal.
Impacted customers are set to receive thousands of pounds and could see debts written off.
Firms have been told to pay out more than £70million in compensation and support to impacted customers.
It follows a review by the energy regulator Ofgem.
Customers could receive payments starting at £40, with the figure rising to £250 or £500 depending on the way they were treated by their supplier, according to a report in the BBC.
Ofgem said the £1000 payments will be for customers who faced "inappropriate installation".
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This comes after a scandal which emerged at the height of the cost of living crisis, when Russia's invasion of Ukraine led to a spike in energy prices.
It was discovered energy firms were switching people who struggled to pay their electricity bills onto prepayment methods.
A Times investigation revealed British Gas sent Arvato debt collection agents to "break into" people's homes and "force-fit" prepayment meters (PPMs).
Suppliers can fit these meters as a last resort to collect debt from customers who are behind on their bills.
But a new code of practice governing the installation of prepayment meters, which all energy companies signed up to last April, was put in place after the investigation.
Even though all firms signed up, they are still barred from forcibly fitting PPMs until Ofgem signs off that they are compliant with the legal changes.
Firms also changed customers smart meter to prepay mode or entered the property to install a new meter.
Ofgem announced a Market Compliance Review (MCR) into involuntary prepayment meter practices at the start of 2024.
A total of eight suppilers will pay out a total of £74million in compensation.
These include:
- Scottish Power
- EDF
- E.ON
- Octopus
- Utility Warehouse
- Good Energy
- Tru Energy
- Ecotricity