Changes to the way prepayment meters are installed without household permission (Ofgem content team example)

Summary

This section sets out new rules we propose introducing to SLCs and modifications to existing SLCs that will not be covered by existing rules, or new aligned guidance.

What we want to do

We want to make changes to the SLC numbering so that we can streamline and group the licences for PPM, warrants and actions to recover debt into new SLCs in SLC28.

Details

There are currently three SLCs that cover installation of PPM where a customer has a PPM installed without consent. These are SLCs 27A, 28 and 28B. We intend to add relevant parts of the Code into a new SLC 28, adding relevant parts of the Code, to cover Involuntary PPM. This will combine the rules relating to PPM, warrants and supplier activities in relation to debt.

In this new condition we intend to have high level SLC requirements that
suppliers must comply with. However, the prescriptive detail behind these will predominantly be included in updated safe and reasonably practicable guidance, which we are renaming ‘PPM Guidance – safe and reasonably practicable’. For example, we want suppliers to make multiple contact attempts and will make this a licence requirement. However, we may want to change the 10 attempts developed in the Code and retained in PPM guidance (safe and reasonably practicable) to something else if evidence emerges that an alternative would be more beneficial for consumers.

The revised SLC 28 will therefore include references to the following sections of the Code:

• debt trigger
• contact attempts
• safe and reasonably practicable assessments
• precautionary principle
• site welfare visits
• aftercare
• document retention

We propose incorporating amendments to existing SLCs relating to Involuntary PPM Credit and information provision to SLC 27A. The proposal is to include a reference and definition for Involuntary PPM credit facilities, in addition to Emergency, Friendly-hours and Additional Support Credit. Please see detail of all SLC proposals in Annex 3.

Definition of Involuntary PPM

We propose to include the definition of Involuntary PPM as set out in the Code within the new SLC 28. It covers the practice of installing PPM under warrant and remote switching smart meters to PPM for debt where the consumer has not consented to it. We have proposed that the meaning of the following will be defined in the ‘PPM Guidance – S&RP’:

• consent
• debt trigger
• precautionary Principle
• site Welfare Visit

Debt Completion Assessment

Within the Code we included a requirement for suppliers to proactively reach out to customers who, following installation of Involuntary PPM have repaid all the debt owed on the account. We propose inserting this requirement for debt completion assessments into SLC28.

The SLC will place a requirement on suppliers to proactively contact customers who have repaid their debt following an Involuntary PPM, to offer the option to move to an alternative payment method, if appropriate, subject to credit check and reasonable security deposit costs and providing all appropriate information as required.