
Eon, edf and octopus energy paying £1,000 into customers' accounts
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Energy customers with eight suppliers who have a certain type of meter are set to receive payouts of up to £1,000 each following an Ofgem review. The energy regulator has scrutinised the
actions of eight gas and electricity suppliers who switched vulnerable customers in arrears to pre-payment methods, without their consent. This could mean that as many as 40,000 customers
who were forced to switch to pre-payment meters - where payment is made in advance by topping up the meter - could receive anything between £40 and £1,000 each paid into their accounts in
compensation, as well as having debts written off. Eligible customers will receive between £40 and £500 depending on how they were treated by their supplier, rising to £1,000 for customers
who faced 'inappropriate installation' or switch to prepayment meters, according to Ofgem. The investigation into Scottish Power, EDF, E.On, Octopus, Utility Warehouse, Good
Energy, Tru Energy and Ecotricity means customers of those firms are set to receive compensation payments. Octopus Energy inherited cases from Bulb and Shell when it took on their customers.
Those who received insufficient debt support or unfair treatment will get £250, while those who had a vulnerability that was ignored will get £500, reports the Express. Ofgem's Market
Compliance Review (MCR) has put energy suppliers under the microscope, examining over 150,000 instances of involuntary prepayment meter installations, including those fitted under warrant
and smart meters switched to prepayment mode remotely. The watchdog also scrutinised the warrant process and the customer experience during the installation of an involuntary PPM,
collaborating with consumer groups and charities to delve into evidence of the gravest violations. Ofgem has announced the conclusion of its probe into eight energy suppliers, although it
continues to investigate British Gas and Utilita. Tim Jarvis, Ofgem's Director General for Markets, commented: "This has been one of the most detailed reviews of supplier practices
in Ofgem's history looking at tens of thousands of cases. It has taken time, but our priority has been to put things right for those who weren't treated properly, and ensure we
don't see bad practice repeated." He added, "While the number of cases where a prepayment meter was wrongfully installed is relatively low compared to the total number of PPM
customers, one case is one too many." Energy companies are set to pay out around £70m to customers who faced "Our review also found wider issues with the processes suppliers had in
place, which is why we've put in place clearer, tougher rules to protect customers in vulnerable situations, and I'm pleased that from today suppliers will be applying our
compensation framework for those customers affected and have also committed to further support such as debt write off." YOUR LEGAL RIGHTS TO REFUSE A PRE-PAYMENT METER He stated:
"Energy companies are set to pay out around £70m to customers who faced 'inappropriate installation' of a prepayment meter after they fell behind on energy bills. Ofgem have
said that customers don't need to do anything to receive their pay-out as it'll be paid directly into their customer account." When it comes to prepayment installation your
energy provider does have the right to take action if you stop paying your direct debit and begin to rack up debt. They could potentially move you on to a prepayment meter, which means you
would most likely be paying a higher rate. A prepayment meter requires you to pay for energy as you use it. "Energy companies are set to pay out around £70m to customers who faced
"However, you do have some rights as a consumer before this happens. Your supplier has to give you at least 28 days to repay your debt before they take action. They cannot enter your
home and install a prepayment meter without at least 7 days prior warning. You can also refuse a prepayment meter if you are unable to physically reach your meter or top up the balance at a
shop. For example, if you are disabled, ill or live very remotely. "Energy companies are set to pay out around £70m to customers who faced "If all the above conditions are met and
you still refuse to pay, your supplier does have the right to gain a warrant to enter your home and install the meter or they could change your smart meter setting to a pay-as-you-go set up.
".