Forced prepayment meter scandal: are you owed a payout from your energy supplier?

Thousands of families across the UK are set to get compensation payouts from their energy suppliers, and you could be one of them.

There has been a huge investigation into the way energy companies forced people, often vulnerable and already struggling, onto prepayment meters without proper warning or permission.

In many cases, the actions were downright shocking, with locksmiths and even police turning up to change the meters.

Now, regulators have said enough is enough.

Around £74 million is being handed out in payouts and debt write-offs, and some households could get up to £1,000.

Here’s everything you need to know, including who’s eligible and what happens next.

Why are energy firms paying compensation?

Back when energy prices were through the roof, thousands of customers couldn’t afford to keep up with their bills. To be fair prices are still high and it’s a struggle!

Instead of offering help, some suppliers decided to force people onto prepayment meters, either remotely or by turning up at their homes with locksmiths in tow.

This hit headlines when British Gas agents were caught breaking into homes, including those of vulnerable people, just to switch their meters.

Ofgem, the energy watchdog, launched a full review. It found serious failures, with many suppliers ignoring the rules. The result? A compensation scheme worth nearly £74 million.

How much could you get?

The amount depends on how badly your energy supplier handled your case. Here’s a rough guide:

• £40 to £250 – for less serious rule-breaking
• £500 – for poor treatment or lack of proper notice
• £1,000 – for the worst cases, including entering homes without consent

If you’re owed money, you don’t need to do anything.

Your supplier should contact you and add the compensation directly to your account.

Which companies are paying out?

Eight energy companies have agreed to make payments:

• Scottish Power
• EDF
• E.ON
• Octopus
• Utility Warehouse
• Good Energy
• Tru Energy
• Ecotricity

Octopus is also covering claims from customers it took on from Bulb and Shell.

So far, £55 million has already been given out, with another £5.6 million set aside for further payouts, and £13 million to cancel some debts linked to forced installations.

What if your supplier isn’t on the list?

British Gas, Utilita and Ovo are still under investigation.

If you’re a customer with one of these firms and think you were treated unfairly, hang tight.

More compensation could be coming once the reviews are finished.

Do I need to apply?

No – Ofgem says customers shouldn’t have to do anything.

If you’re eligible, your supplier will get in touch and apply the payment automatically.

But if you think you were missed or have concerns, it’s worth contacting your energy company directly.

What’s changing now?

New rules are in place to stop this from happening again. Energy firms can only fit a prepayment meter without your consent in very limited situations, and they must follow strict steps before doing so.

If you’re behind on bills, they must now work with you to offer support and time to sort things out.

What should you do now?

If your energy company has already been in touch, check your account or letters for a breakdown of what they’re offering.

If you haven’t heard anything but suspect you were affected, keep an eye on your post and account updates, and speak to your provider if needed.

This could be a good time to also:

• Check your energy bills – make sure they’re correct
• Ask for a debt breakdown – especially if you’ve been told you owe large amounts
• Seek help – organisations like Citizens Advice can guide you if you’re unsure where you stand, or look to sign up to support from the Priority Services Register or get free gas and electricity vouchers if you’re struggling to pay your bill

Final word

Forcing struggling households onto prepayment meters in the middle of a cost of living crisis was a disgrace. Thankfully, some justice is being served, and for many, this money could be a lifeline.

Check in with your energy account and keep talking to your provider. If you’ve been treated unfairly, don’t let it slide!