Court rules on Scottish Power prepayment meters before approval from watchdog

A court has signed off 124 warrants for Scottish Power to force-fit prepayment meters in customers’ homes even though the firm has not yet proved to the energy regulator that it is adhering to new rules to protect the vulnerable.

In a pilot case, a debt collection agency, Richburns, appeared yesterday by video link at Reading magistrates’ court seeking warrants to access the homes of customers who are in debt with Scottish Power. Despite the agent telling the court that Scottish Power had not yet been approved as complying with new rules from Ofgem, the warrants were all granted.

Judge Samuel Goozee said that even though Ofgem had not yet provided Scottish Power with formal sign-off, it was evident in his view that the firm was aware of its responsibilities under the new code of practice.

• Millions protected by tighter ban on force-fitting prepayment meters

Ofgem later said that the warrants must not be executed until the regulator confirms that Scottish Power’s policies meet new strict conditions for forcibly installing prepayment meters.

Energy firms have been prevented from having these cases listed in courts for the past eight months following an undercover investigation by The Times, which found that British Gas was sending agents to break into its customers’ homes to forcibly install the meters, even when the families were known to have extreme vulnerabilities.

If energy customers are forced onto prepayment meters but cannot afford to top up, their supply is cut off.

Last month Ofgem announced its new rules for suppliers, which includes an outright ban on forcibly installing meters in the homes of millions of the most vulnerable people, including the over-75s and families with children under two.

The rules, which come into effect next month, will be part of energy suppliers’ licence conditions and if they breach them they face enforcement action and substantial fines. There has previously been criticism of the courts for signing off hundreds of these cases in bulk.

Under Ofgem’s new code, customers have to be contacted at least ten times about their debt before an energy firm can apply for a warrant and the debt must be for more than £200.

Last winter The Times investigation found that British Gas had been granted warrants to forcibly install meters in homes where occupants included the elderly, customers with known severe mental health problems and the mother of a four-week-old baby.

The findings led to the force-fitting of prepayment meters being suspended and investigations by Ofgem, the government and two parliamentary committees. Lord Justice Edis, one of the country’s most senior judges, ordered courts to stop listing hearings for energy warrants.

Energy firms have also been told they must identify cases where they have previously wrongfully installed the meters and offer those customers compensation and change them back to another meter.

Prepayment meter installations should only be used when all other options to recover debt have been exhausted. They should never happen when customers use powered medical equipment, refrigerated medicines or have certain conditions that require warmth, such as emphysema.

Last year energy suppliers force-fitted prepayment meters in customers’ homes more than 94,000 times.

Ofgem said that while it was aware of court pilot schemes to test the application process for warrants, its expectations of suppliers had not changed.

Scottish Power has confirmed that it will not execute any of the warrants until it has permission from Ofgem.

It said: “We are working closely with Ofgem to ensure that vulnerable customers are protected and to assure the regulator that our processes adhere to its guidelines.”