Commons Sense

House of Commons · Ministers' Questions

Prepayment Meters: Compensation

Tuesday 21 May 2024 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Labour MP Dan Carden asked about compensation for households involuntarily fitted with prepayment meters.
  • The energy suppliers have conducted 150,000 assessments, resulting in 2,500 cases due compensation and 1,502 payments made.
  • Only 1,000 more compensation payments are planned by the energy suppliers.

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Questions & Answers

Q1 Dan Carden Lab Liverpool Walton
Context

The energy ombudsman has ruled that some constituents should not have been placed on prepayment meters due to vulnerabilities. Only 1,502 out of 150,000 assessments resulted in compensation.

Question

What estimate do you have of the number of households receiving compensation after being involuntarily fitted with prepayment meters? Despite the energy ombudsman ruling that one of my constituents should not have been placed on a prepayment meter due to her vulnerabilities, she has not received any compensation. Only 150,000 assessments were made and only 2,500 cases are due compensation, making it 1%. Why is the number so small? Could it be that energy suppliers decide who receives payments?

Answer from Amanda Solloway

The energy suppliers are responsible for paying compensation. They have carried out 150,000 assessments so far, with 2,500 customers due compensation and 1,502 payments made, with another 1,000 planned. I thank the hon. Gentleman for his question; the forced installation of prepayment meters is unacceptable, and the Government have done everything to counteract it. The actual figure on compensation is 60%, not 1%.

Partly answered

Not addressed: Specifics about why only a small number of claims are being compensated were not addressed in full detail.

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Q2 Dan Carden Lab Liverpool Walton
Context

The energy ombudsman has ruled that some constituents should not have been placed on prepayment meters due to vulnerabilities. Only 1,502 out of 150,000 assessments resulted in compensation.

Question

Despite the energy ombudsman ruling that one of my constituents should not have been placed on a prepayment meter due to her vulnerabilities, she has not received any compensation. Only 150,000 investigations were carried out and only 2,500 cases are due compensation, making it 1%. Why is the number so small? Could it be that energy suppliers themselves, overseen by Ofgem, are deciding who is entitled to these payments?

Answer from Amanda Solloway

I thank the hon. Gentleman for his question; the forced installation of prepayment meters is unacceptable, and the Government have done everything to counteract it. The energy suppliers are responsible for paying compensation, they carried out 150,000 investigations, in 2,500 cases compensation is due, and instead of 1%, the actual figure on compensation is 60%.

Partly answered

Not addressed: Details about why only a small number of claims are being compensated were not provided directly.

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