Energy firms could be forced to pay customers compensation over wrongful meter fittings
The 2023 prepayment meter scandal, which saw over 30,000 forced installation warrants issued in a single month, led to a fundamental overhaul of UK energy rules.
In 2026, involuntary installations are strictly a 'last resort' and have dropped significantly from their 2022 peak of 600,000. While suppliers can still seek warrants or remotely switch smart meters for debt recovery, they must now follow a rigorous 10-point contact process and prove that no vulnerable residents are at risk before any change can occur.
Prepayment meters used to be the most expensive way to buy energy; but in 2026, the 'prepayment premium' has been officially abolished. Following Ofgem's levelisation changes, prepayment standing charges are now identical to those for direct debit customers. In fact, under the current 2026 price cap, prepayment unit rates are often slightly cheaper than direct debit. The most expensive way to pay for energy today is actually 'standard credit' (paying by cash or cheque upon receipt of a bill), which typically costs households around £130 more per year than other methods.
Users also have the hassle of needing to regularly top their meters up with credit. NimbleFins previously reported millions of pounds in energy bill vouchers for those on prepayment meters had not been cashed despite users being some of the most vulnerable in society.
In 2026, energy support has moved away from universal lump sums toward targeted relief. The Warm Home Discount now provides a £150 automatic rebate for roughly 6 million eligible households. For prepayment customers, this is often credited directly to smart meters or sent as a voucher. Additionally, the Household Support Fund has been extended to March 2026, allowing local councils to provide emergency energy vouchers to those at risk of 'self-disconnection'—a vital safety net for those who cannot afford to top up.
Following the 2023 crisis, Ofgem implemented a mandatory Code of Practice that is now a permanent condition of every energy supplier's licence. This led to a massive redress scheme where eight major suppliers committed £18.6 million in 2025 to compensate 40,000 customers who were wrongly switched. Payments for these historical errors ranged from £40 for procedural failures to £1,000 for cases where meters were inappropriately installed in the homes of vulnerable people.
Prepayment meter rules
Under the 2026 mandatory Code of Practice, suppliers are strictly banned from involuntary prepayment switches in high-risk households, including:
- Households with residents aged 75 and over (if no other support is present).
- Homes with children under the age of 2.
- Residents with terminal illnesses or a dependency on powered medical equipment.
- Suppliers must make at least 10 attempts to contact the customer and perform a 'site welfare visit' before a warrant can even be considered.
- Engineers must wear body cameras during warrant installations to document any previously unknown vulnerabilities.
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