3rd Feb 2023 08:32
(Alliance News) - UK energy watchdog Ofgem on Friday said it has extended the ban on acquisition-only tariffs, which are designed by firms to entice new customers.
The ban means energy companies are no longer able to use these tactics until March 2024.
Ofgem said the move has been made to "continue tackling ongoing risks to market stability".
"Ofgem is modifying domestic electricity and gas supply licences to reflect this and to allow both measures to be renewed on an annual basis," the watchdog said.
Meanwhile, Ofgem has told suppliers to suspend the system of forcibly installing prepayment meters into the homes of customers that have fallen into arrears, PA reported.
The request came after it was revealed that debt collectors working for Centrica PLC's British Gas had forced their way into the homes of vulnerable people.
This followed a Times investigation which revealed how customers – including disabled and mentally ill people – have been forced by British Gas on to the pay-as-you-go meters, or face having their gas switched off.
Ofgem Chief Executive Jonathan Brearley, said he has "warned all domestic energy suppliers to get their house in order on forced instalments of prepayment meters", while ordering the "biggest ever market review" into the meters to "uncover poor practice".
He said: "I will not hesitate to take the strongest action in our powers where needed. It is right British Gas has apologised following the very worrying allegations in The Times, but millions of customers expect action not warm words."
He added that Ofgem is opening an investigation into British Gas on this issue.
On Tuesday this week, British Gas said it would stop applying for court warrants to enter customers' homes and fit prepayment meters following reports they had been forced on "vulnerable" customers.
Energy companies can obtain court warrants which give them legal rights to enter people's homes and fit prepayment meters if customers have not paid their bills.
By Xindi Wei, Alliance News reporter
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