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OFGEM HAS CRACKED DOWN ON POOR PRACTICES AS £5.6 MILLION IN PAYOUTS AND £13 MILLION IN DEBT WRITE-OFFS ANNOUNCED. 08:03, 01 Jun 2025 Thousands of energy customers are set to receive
compensation over forced prepayment meters. Ofgem has cracked down on poor practices as £5.6 million in payouts and £13 million in debt write-offs announced. UK households will receive
compensation or have their energy debts wiped after an Ofgem investigation revealed widespread failings in how energy suppliers forced customers onto prepayment meters (PPMs). The regulator
confirmed that eight energy firms – Scottish Power, EDF, E.ON, Utility Warehouse, Good Energy, TruEnergy, Ecotricity, and OVO – will now pay compensation and offer support to affected
customers. READ MORE LLOYDS BANK BRINGS IN BIG CHANGE AND ANYONE WHO IS IN A 'COUPLE' WILL BENEFIT More than 40,000 households are due to receive a share of £5.6 million in
compensation, with an additional £13 million in energy debt being written off for customers who had a PPM forcibly installed between 1 January 2022 and 31 January 2023. Article continues
below “One case is one too many,” said Tim Jarvis, Ofgem’s director general of markets. “This has been one of the most detailed reviews in Ofgem’s history… Our priority has been to put
things right and ensure we don’t see bad practice repeated.” Goodwill payments of £40-60 will be paid by suppliers on a case by case basis have been announced, as well as £250 compensation
over insufficient debt support, £250 compensation over unfair customer treatment and £500 compensation over vulnerability not considered. £1k compensation is coming over inappropriate
installation, switch or use of PPM. Energy UK’s CEO, Dhara Vyas, noted that suppliers are walking a tightrope between protecting vulnerable customers and preventing debts from spiralling
across the board. Article continues below “Involuntary installations were a last – but necessary – resort,” Vyas said. “Bad debt drives up costs for all customers. The industry is keen to
work with Ofgem on proposed relief schemes.” Compensation should be paid directly to your customer account, and you may also have a portion of your debt written off.