Ofgem boss should resign over prepayment meter scandal, say charities

Charities have called on the boss of energy regulator Ofgem to resign over the scandal that has seen suppliers force prepayment meters on hundreds of thousands of vulnerable Britons.

Former Labour prime minister Gordon Brown told The Independent this week that chief executive Johnson Brearley should quit over the “dismal failure” to protect the poorest customers.

The issue was thrust into the spotlight after a report that British Gas subcontractors broke into the homes of customers – including those with disabilities and mental health issues – to install the meters.

Fuel poverty groups have now urged Mr Brearley to step down, as they also called for Rishi Sunak’s government to ban the forced installation of costly prepayment meters and slap energy firms with hefty fines.

“The chief executive [of Ofgem] should step down because the regulator has failed to act for the people it is supposed to be protecting,” Ruth London, co-director of Fuel Poverty Action, told The Independent.

“Instead, suppliers have been given a free hand to basically break and enter people’s homes and install a meter that will leave them in the cold and dark,” she added, saying many could not afford to top up.

Magistrates were ordered to halt all warrant applications by companies wishing to enter homes earlier this week after energy secretary Grant Shapps and Ofgem asked energy suppliers to voluntarily suspend the activity.

The regulator also launched a probe into British Gas’s use of debt agents, saying it was “unacceptable” to impose installations on vulnerable customers before all other options have been exhausted.

Fuel Poverty Action is calling for fines, compensation for victims and even the withdrawal of energy companies’ licences if any are found to have deliberately broken conditions that demand consideration of customers’ safety.

“A resignation at Ofgem should be the start of a domino effect – it’s not just one man,” said Ms London. “There are more culpable people in the energy companies, in the debt collection agencies and in the government.”

She added: “People are entitled to compensation for the financial loss and the trauma they’ve suffered by having their homes broken into.”

Citizens Advice has estimated that 600,000 people were switched from credit meters to prepayment meters, which are typically more expensive, by their supplier last year. The charity said 3.2 million who have the meters were left in the cold and dark after running out of cash.

Paula Peters, campaigner at Disabled People Against Cuts, said lots of people with disabilities have had prepayment meters “forced on them while being chased for debt, it’s caused a lot distress”.

The activist added: “The Ofgem chief executive should step down and take some responsibility, the regulator should be held to account for allowing this to happen. And these greedy companies need to be held to account with fines and compensation.”

Mr Shapps has told the energy companies to report back on what action they would be taking – including compensation – on any prepayment meters wrongfully installed in customers’ homes. But the government has said it is not going to be “prescriptive” about the form of any compensation.

Energy companies received 33,000 complaints about prepayment meters last year, according to freedom of information data obtained by news site Open Democracy. The suppliers are obliged to report the complaints to Ofgem.

Writing for The Independent, Mr Brown said both Ofgem and the government had “failed dismally to properly monitor and expose utility companies and their debt agents”.

An Ofgem spokesperson said: “The allegations against British Gas are shocking. Ofgem is focused on protecting vulnerable customers and that’s why we acted swiftly to ask all suppliers to pause forced installations of prepayment meters whilst we conduct a deeper review into the issues.

“We have also launched a formal investigation into British Gas, and we have banned them from installing any more PPMs by force until British Gas’s board can assure us that they can protect vulnerable customers.”