Martin Lewis’ MSE warns 40,000 UK households they could be due up to £1,000Ofgem announced it will pay out £5.6 million to ten of thousands of customersCommentsNewsChristian Abbott Audience

Writer10:14, 02 Jun 2025Ofgem has announced it will pay out £5.6 million to ten of thousands of customers(Image: PA) Martin Lewis' Money Saving Expert (MSE) team has said that tens of

thousands of energy customers could be entitled to £1,000 in compensation.

This is for those that were forced onto an energy prepayment meter, with Ofgem announcing that £5.6 million will be paid out by eight energy companies to 40,000 customers in total, following

‌ Read more: Nationwide customers told June dates to check bank accounts for £100 bonus payments

For those entitled to a payment, it could either be £40, £60, all the way up to £250, £500 or £1,000.

MSE said: "How much you'll get depends on how you were treated during this process, though Ofgem says very few will get the full £1,000, which will be paid to those who shouldn't have been

switched at all."

Article continues below Ofgem has also launched an investigation into often vulnerable customers being switched to prepayment meters after they fell behind on bills between January 1, 2022,

and January 31, 2023.

The energy firms at the centre of the investigation have already paid out £55million in financial support.

It comes after new stricter rules on forced prepayment meter installations were introduced by Ofgem in 2023.

‌ Tim Jarvis, director-general of markets for Ofgem, said: “This has been one of the most detailed reviews of supplier practices in Ofgem’s history, looking at tens of thousands of cases.

“It has taken time, but our priority has been to put things right for those who weren’t treated properly, and ensure we don’t see bad practice repeated.

“While the number of cases where a prepayment meter was wrongfully installed is relatively low compared to the total number of PPM customers, one case is one too many.

Article continues below “Our review also found wider issues with the processes suppliers had in place, which is why we’ve put in place clearer, tougher rules to protect customers in

vulnerable situations, and I’m pleased that from today suppliers will be applying our compensation framework for those customers affected and have also committed to further support such as

debt write-off.

“We have made our expectations clear to suppliers on how those customers who were treated poorly should be compensated. They have, and continue to, work closely and collaboratively with us

to make sure their processes are robust and that their customers are properly supported.

“We know that PPMs can be an effective tool in helping customers manage their costs and debt. However, customers must always be treated fairly and compassionately, and we are confident that

the changes we have made are a significant step to ensure that happens.”