Compensation for installing prepayment meters without permission

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Energy suppliers that did not follow the rules when installing prepayment meters to collect debt without household permission will pay £18.6 million in compensation and debt write off to at least 40,000 customers.

In 2023 we asked energy suppliers to pause installing prepayment meters without a household’s permission. Since then, we have been checking how prepayment meters have been installed in the past. These checks are part of our review called the ‘Market Compliance review’.

We have given energy suppliers guidelines they must follow when paying compensation to bill payers who had a prepayment meter installed without permission during the assessment period 1 January 2022 to 31 January 2023.

Energy suppliers will pay £5.6 million in compensation using these guidelines to 40,000 customers that had a prepayment meter installed without permission during the assessment period. Energy suppliers will also write off a further £13 million debt from customers who had a prepayment meter installed without permission during the assessment period.

This is on top of £55 million of financial support provided directly to affected consumers by energy suppliers before completing the review in the form of hardship payments and debt write-off.

How to get compensation

If you are entitled to compensation, you do not need to do anything. You will be contacted by your energy supplier.

Amount of compensation you could get

Detriment Compensation level
Process misalignment, data quality and record keeping Goodwill payments of £40 to £60 will be paid by suppliers on a case by case basis
Insufficient debt support £250
Unfair customer treatment £250
Vulnerability not considered £500
Inappropriate installation, switch or use of prepayment meter £1,000

Installing a prepayment meter without household permission

We have strengthened the rules about installing prepayment meters without a household’s permission. Your energy supplier must follow our rules before they can move you onto or install a prepayment in your home without your consent. Read our guidance about the benefits of paying for your energy using a prepayment meter and the rules that suppliers must follow in our prepayment meters consumer guidance.

We are continuously checking that suppliers are following our rules before installing prepayment meters without a household’s permission. Check energy suppliers that can install prepayment meters without household permission.

Support if you’re in debt

If you are struggling to pay your energy bills you should contact your energy supplier as soon as possible. You could also get a grant or other benefits depending on your situation. Find out how to get help if you cannot afford your energy bills.