Energy companies will not be able to resume forced prepayment meter installations in late March, the chief of the energy regulator said.
Ofgem originally imposed a temporary ban on installing prepayment meters with warrants until March 31st.
Jonathan Brearley was “deeply concerned” about companies forcing prepaid installs on vulnerable customers.
The ban will be lifted “only if and when” the companies follow Ofgem’s new code of conduct, he said.
Mr Brearley wrote to suppliers in November “to make sure they are clear on our rules”.
Speaking to MPs at a joint hearing of the Economic and Justice Committees, he said the ban would be lifted “only if and when” companies start acting in accordance with Ofgem’s new code of conduct.
He announced that another compliance review was launched in January, looking at the systems, processes and outcomes for customers subject to prepayment meter installations.
The energy regulator is “now assessing whether we need to tighten these rules” and is working with industry on a new code of practice, which should come into force by the end of March.
The Ofgem boss said companies “don’t have to wait for our review to be complete” and that they “need to fix things now”.
- Spring Budget: Electricity meter bill prepayment reduced by £45
Mr Brearley also confirmed that ahead of the press reports of installing prepayment meters, Ofgem had held extensive discussions with consumer groups who “warned us about behavior across the industry”.
He called for a general increase in service standards, citing an example at E.On where 50% of incoming calls are dropped before being answered.
He said, “If you’re vulnerable, how do you tell your company you’re vulnerable if you can’t get through on the phone?”
At the start of the session, Chris O’Shea, CEO of British gas owner Centrica, said he was only alerted to potential breaches of regulations through press reports.
Last month it emerged that debtors working for British Gas had broken into the homes of vulnerable people to force-install meters and courts had waved through petitions from energy companies to forcibly install meters.
Chancellor Jeremy Hunt is expected to announce a plan in his spring budget on Wednesday that aims to bring energy costs for prepayments into line with customers who pay by direct debit.
He said it was “clearly unfair that those with prepayment meters pay more than others”.
More than four million ailing homes are set to save £45 a year on energy bills from July 1st.
Households with prepayment meters tend to be vulnerable or have low incomes.
But they pay more because energy companies pass on the cost of managing the meters.
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