Energy regulator reveals end to forced installation of prepayment meters is temporary
Ofgem has revealed that the end of forced installation of controversial energy prepayment meters only extends until the end of March.
The watchdog said the date, that household energy suppliers had agreed to, also included a temporary halt to remote transfers for customers currently on smart meters.
The government had suggested last week that the practice of forcing indebted customers onto prepayment meters had ended with the agreement of firms.
There was no suggestion that the date was temporary though it coincides with the 31 March deadline for Ofgem to complete its subsequent review of the treatment of vulnerable customers.
The probe was ordered by the government following a newspaper investigation that revealed debt collectors working on behalf of British Gas had forced their way into the homes of vulnerable customers, including people with disabilities.
The Times further claimed that employees of the company used by British Gas were incentivised with bonuses to fit prepayment meters.
They are controversial because gas and electricity typically costs more while they also leave users at the mercy of decisions between heating or eating amid the wider cost of living crisis.
Suppliers were asked to review their processes for dealing with customers in arrears as part of the regulator’s “intensive” investigation.
Please use Chrome browser for a more accessible video player
Forced prepayment meters ‘disgraceful’
The number of struggling households has risen sharply over the past year as gas and electricity bills have hit record levels, largely as a result of surging wholesale costs exacerbated by Russia’s war in Ukraine.
An additional 600,000 homes were on prepayment meters last year.
Read more business news:
Inflation dips by more than expected but still above 10%
Flybe faces permanent grounding as talks with bidders stall
Confirmation that the forced installation ban was temporary came in a letter to suppliers from Ofgem’s chief executive Jonathan Brearley, who was updating executives on the progress of its review.
He wrote: “Further to our letter on Ofgem’s expectations regarding the treatment of domestic customers during prepayment meter installations, as discussed during our conversation on 9 February 2023, you have agreed to our request to immediately halt forced installations and remote transfers to pre-payment meters until the end of March 2023.”
Please use Chrome browser for a more accessible video player
The data behind prepayment meters
He said their respective preliminary submissions to the review were currently being examined, pending further consultation.
The review could potentially conclude that the ban is extended – or made permanent as many debt charities have demanded.
But in a nod to industry frustration over soaring levels of arrears, Mr Brearley added: “Some suppliers have expressed concerns on the levels of customer debt caused by a halt to warrant pre-payment meter installation and forced remote switch of smart meters to pre-payment mode.
“If this debt cannot be recovered from some customers, then this increases costs for suppliers.
“We are aware of the difficult balance here as unrecoverable debts from some customers may then be recovered from the bills of paying customers, many of whom are themselves struggling with paying their bills given the wider affordability issue.
“We have an ongoing programme of work to assess costs to suppliers from customer debt. Once we have analysed your responses to our request for information on debt, we will be able to determine what action we need to take and, if an adjustment is required, we will act quickly.”
Sky News has approached Ofgem and the Department for Energy and Climate Change for a statement but is yet to receive a reply.
Donald Trump’s victory was secured on an unequivocal promise to stretched American households that he would “end inflation”, but markets and economists are anticipating his second term will do the opposite.
A combination of corporate tax cuts, government borrowing, lower migration and swingeing tariffs on overseas imports are all expected to heat up the American economy and stoke price rises.
Bond yields on 10-year US Treasuries, effectively the price of borrowing for the American government, were up by 3.6% overnight, rising more than 15 basis points to above 4.4% as European markets opened.
That signals investors believe that borrowing will rise, and the Federal Reserve will be forced to slow rate cuts in order to tackle inflation.
US election latest: Trump beats Kamala Harris in race to White House
Money latest: The market winners and losers after Trump’s win
A clearer picture will emerge on Thursday when Federal Reserve chairman Jay Powell, who Mr Trump said will not be reappointed, announces the next move on rates.
Markets still expected a 0.25 percentage point cut (a similar move to that anticipated from the Bank of England earlier in the day) but Mr Powell’s comments will be scrutinised for signals of what Trump 2.0 means for the prospect of further cuts.
Please use Chrome browser for a more accessible video player
Trump wins: Demographics and key issues
But higher prices for consumers are not necessarily bad news for corporate America, with the dollar surging against sterling and the euro as swing states fell to Mr Trump, and Wall Street futures trading indicating a rally when they reopen with him confirmed as president-elect.
Shares in US banks were boosted with J.P. Morgan, Goldman Sachs and Morgan Stanley all up more than 6% in pre-market trading, along with Tesla, boosted by more than 13% as markets anticipate a dividend for Elon Musk’s campaign-trail support.
Keep up with all the latest news from the UK and around the world by following Sky News
Defence stocks were higher too and not just in the US – BAE Systems and Rolls Royce were both up – reflecting likely pressure on America’s NATO allies to make good on their commitments to increase spending.
Bitcoin was also positive in anticipation of a more benign regulatory environment from a president who used the campaign platform to launch his own cryptocurrency.
By contrast renewable holdings, the target of much of Joe Biden’s economic stimulus, were in negative territory, with wind and solar priorities likely to be replaced by a pledge to “drill baby, drill”.
Of most concern to America’s trading partners and allies will be Mr Trump’s promise to erect barriers to free trade.
The man who said tariffs “is the most beautiful word in the world” has pledged a 60% levy on Chinese imports and 10% on those from elsewhere, a deeply protectionist move that could trigger a trade war with China and the EU.
These can only increase prices in the US, with importers paying the levies at the point of entry, and other trading blocs likely to respond in kind.
Read more on Trump’s victory:
How worried should we be about Trump’s second presidency?
Dollar surges amid Trump victory
The EU has already imposed its own 35% tariff on Chinese EVs to the dismay of the continent’s carmakers the measure is intended to protect.
While these tensions play out, post-Brexit Britain, a relatively small player outside the major trading blocs, is likely to be a spectator.
Post Office campaigner Sir Alan Bates is yet to receive a reply from Sir Keir Starmer, despite writing to him over a month ago.
Sir Alan said he had written to the prime minister to remind him the “clock is still ticking” on a financial redress deadline for victims.
In his letter, he demanded a March 2025 deadline for compensation for sub-postmaster victims of the Horizon scandal.
Sir Alan confirmed to Sky News he was yet to hear back from the prime minister.
Keep up with all the latest news from the UK and around the world by following Sky News
“It was over a month ago,” he said.
“I sent him a reminder yesterday. I told him the clock is still ticking and it’s now five months from the March deadline, which I’m told is still achievable by other professionals.
“So let’s get on with it, that’s all we want. Get on with it.”
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the fullest version.
You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports7 months agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Environment1 year agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway