Magistrates ordered to stop hearing applications for forced installation of prepayment meters
The Senior Presiding Judge of England and Wales, Lord Justice Edis, has said applications for warrants of entry by energy companies for the purpose of installing a pre-payment meter should, "with immediate effect, cease to be listed”.
This comes as the energy regulator, Ofgem, said it had become "sufficiently concerned" at the operation of suppliers and had asked all companies to suspend forcible installations.
An investigation by The Times alleged that debt agents for British Gas had “broken into people's homes” to fit meters, even when the residents were known to have “extreme vulnerabilities.”
In a statement on 2 February, an Ofgem spokesperson said: “These are extremely serious allegations from The Times. We are launching an urgent investigation into British Gas and we won’t hesitate to take firm enforcement action.
“It is unacceptable for any supplier to impose forced installations on vulnerable customers struggling to pay their bills before all other options have been exhausted and without carrying out thorough checks to ensure it is safe and practicable to do so.
“We have launched a major market-wide review investigating the rapid growth in prepayment meter installations and potential breaches of licences driving it.”
In his guidance issued to magistrates on 6 February, Lord Justice Edis said: “Magistrates and district judges (magistrates' courts) in issuing warrants of entry must act proportionately and with regard to the human rights of the people affected, particularly any vulnerability."
He added: "In carrying out this assessment, they have reasonably placed reliance on the assurance made by all applicants on oath that the supplier and their agents have complied with the standards set by Ofgem, the energy regulator."
The judge said that while energy firms could still make a case for a warrant to be heard, they would have to first satisfy a court "in detail as to the integrity of their procedures, in particular relating to the vulnerability of occupiers”.
He noted that the decision to recommence listing will depend on the progress of the investigation carried out by Ofgem.
Lord Justice Edis confirmed that his direction "does not impact on applications for warrants in commercial cases, or for other purposes including the investigation of theft or tampering, or safety”.
British Gas said that following the article in The Times, “which suggested failures in processes and policies by a third-party contractor”, it had suspended all warrant activity and wouldcomplete a thorough, and prompt, investigation.
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 are unacceptable and we immediately suspended their warrant activity.
“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, I am extremely disappointed that this has occurred. As a result, on Wednesday morning, we took a further decision to suspend all our prepayment warrant activity at least until the end of the winter.”
In a statement Arvato Financial Solutions Limited said it “acts in compliance with the regulatory requirements which govern our operations at all times”.
The company said: “We respect and adhere to industry standards set by Ofgem as well as other regulatory bodies. We also work in accordance with our contractual obligations to our clients, and the standards they expect us to meet. Above all, we treat customers with whom we come into contact with respect and assess their individual needs at the time of our visit.
“We deeply regret any misconduct by individual employees. None of the inappropriate statements attributed to our employees in press reports represent the views of the company, and are not in accordance with how we train our people to interact with consumers.”
Lottie Winson
