8 energy suppliers set to hand UK households up to £1,000 in compensation

Tens of thousands of energy customers are set to receive payouts of up to £1,000 each, and could see debts written off.

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Eight energy firms are set to handout compensation payments and payouts over forced prepayment meter fitting. Tens of thousands of energy customers are set to receive payouts of up to £1,000 each, and could see debts written off.

Energy UK, representing energy firms, said suppliers had worked hard to "put things right", following the intervention by Ofgem. Eligible customers could receive payments starting at £40, rising to £250 or £500, depending on the way they were treated.

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The £1,000 payments were for customers who had faced "inappropriate installation", Ofgem said. "Our priority has been to put things right for those who weren't treated properly, and ensure we don't see bad practice repeated," said Tim Jarvis, Ofgem's director general of markets.

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The nearly £74m Ofgem announced was being dispersed applies only to customers at eight suppliers: Scottish Power, EDF, E.ON, Octopus, Utility Warehouse, Good Energy, Tru Energy and Ecotricity.

A Times investigation revealed British Gas sent Arvato debt collection agents to "break into" people's homes and "force-fit" prepayment meters (PPMs).

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One Arvarto debt collector the reporter worked alongside allegedly made some astonishing claims about the warrant process.

They reportedly said: "Honestly, it's a little bit cheeky. Basically the government says you can't disconnect residential customers so what we do is we install a prepayment meter and then if they don't top up they self-disconnect.

"So we don't actually disconnect them. It's a bit of a laughable loophole. That person could tell you that their entire family of 50 were in a horrific aeroplane crash and were the sole survivor and we'd still be saying that's a shame but we are changing your meter.

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"As long as you don't do anything silly you won't get in trouble. You'll have to literally like murder someone in this job to get in trouble. You won't get in trouble."

Centrica chief executive officer Chris O'Shea said: "Protecting vulnerable customers is an absolute priority and we have clear processes and policies to ensure we manage customer debt carefully and safely.

"The allegations around our third-party contractor Arvato Financial Solutions are unacceptable and we immediately suspended their warrant activity.

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"Having recently reviewed our internal processes to support our prepayment customers as well as creating a new £10 million fund to support those prepayment customers who need help the most.”

He added: “I am extremely disappointed that this has occurred.”

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