Prepayment meter compensation: UK energy customers to get £1,000 after energy firms scandal - how to claim

• Up to £1,000 in compensation will be paid to customers affected by forced prepayment meter installations
• £74 million is being distributed by eight energy suppliers after Ofgem found widespread rule breaches
• Some customers will also have debts written off where meters were inappropriately installed
• The scandal emerged during the cost-of-living crisis and led to a nationwide outcry and official review
• Most affected customers do not need to apply — payments will be issued automatically

Thousands of energy customers across the UK are in line for compensation of up to £1,000, and in many cases could see their debt wiped out.

It follows a scandal involving the forced installation of prepayment meters in vulnerable households.

The payouts are part of a £74 million package of compensation and financial support, announced after energy regulator Ofgem found that suppliers had repeatedly failed to follow proper procedures - often forcing struggling customers onto prepayment meters without consent.

This scandal gained national attention two years ago at the height of the cost-of-living crisis, when it emerged that energy firms were switching customers - sometimes by remotely changing smart meters or even entering homes - to pay-as-you-go systems, disproportionately affecting vulnerable people.

One of the most shocking cases involved British Gas agents forcibly entering homes, sparking public outrage and triggering Ofgem’s year-long review of forced installations.

Who is eligible?

Ofgem’s review found that eight energy suppliers - Scottish Power, EDF, E.ON, Octopus, Utility Warehouse, Good Energy, Tru Energy, and Ecotricity - had breached standards when switching customers to prepayment meters.

Affected customers of these companies may receive:

• £40–£250 if proper processes weren’t followed
• £500 for more serious breaches
• £1,000 for the most inappropriate installations
• Debt write-offs for some who were wrongly forced onto prepayment

Of the £74m total:

• £55m has already been given in financial support
• £5.6m is earmarked for direct compensation to 40,000 customers
• £13m will go towards writing off debt

Further investigations are still ongoing into British Gas, Utilita, and Ovo, which could lead to additional payouts for tens of thousands more.

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How to claim

Most customers don’t need to take any action. If you're eligible:

• Your energy supplier may already have contacted you or issued a payment.
• If not, compensation will be paid automatically, either as a credit to your account or directly to you.
• Ofgem has confirmed that no separate application process is required.

If you’re unsure whether you qualify or haven't heard anything, it’s worth checking with your energy supplier directly for clarity.

What’s changing?

In response to the scandal, Ofgem has introduced a new code of practice that significantly tightens the rules around installing prepayment meters without customer consent.

Suppliers must now meet stricter criteria and demonstrate that they’ve exhausted all other options before proceeding.

While Energy UK, the industry body, says involuntary meter installs may still be necessary in some extreme debt cases, charities like Citizens Advice are urging firms to prioritise fair treatment and swift compensation.

“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.

If you think you might be affected - or want to support someone who is - now is the time to check in with your supplier and ensure your account reflects any compensation or debt write-offs due.

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