Forced on to a prepay energy meter? You may be due money back as 10,000s to be compensated

A total of eight energy suppliers are set to pay £5.6 million in compensation to 40,000 customers, plus put a further £13 million towards debt write-offs.

The move follows an investigation by regulator Ofgem, which found some providers' processes "fell short of required standards" at the height of the energy crisis, when thousands of households were struggling to keep on top of their energy bills. If you need support, see our What to do if you're struggling to pay your energy bills guide.

Compensation and debt-write-offs to be offered – who's affected

All 40,000 customers who were forcibly moved to a prepayment meter between 1 January 2022 and 31 January 2023 will be paid between £40 and £1,000.

If affected, you'll have been a customer of Ecotricity, EDF, E.on Next, Good Energy, Octopus, Scottish Power, Tru Energy or Utility Warehouse. Ofgem is continuing to investigate the practices of British Gas, Ovo, and Utilita.

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. As Ofgem outlines:

If you are due compensation, your supplier at the time will proactively contact you – regardless of whether you're still with it. Ofgem told us suppliers will make a number of attempts to contact affected users and that it expects compensation to be paid quickly, though it has not given a specified timescale. How you're paid will depend on your circumstances and preferences, but could include by cheque or bank transfer.

When it comes to debts, suppliers will consider your individual circumstances when determining the level of debt write-off that will be offered.

Ofgem says affected customers don't need to do anything. But if you believe you are due compensation or a debt write-off and don't hear from your energy supplier in the coming weeks, contact it.

You can request to be moved off a prepayment meter

If you shouldn't have had a prepayment meter installed or smart meter switched to prepay mode between 1 January 2022 and 31 January 2023, your supplier should have already offered to switch this back.

If you believe you've been switched unfairly, you can complain to your supplier. If you're unhappy with your supplier's response, you can also escalate your complaint to the Energy Ombudsman.

In general, under Ofgem rules, if you've repaid all of the debts owed on your prepayment meter, energy firms must offer to assess whether you still need your meter, though any required credit checks will still need to be passed before you can switch to a credit meter.

Forcible prepayment meter installations are now banned for some

In April 2023, Ofgem permanently banned all energy suppliers from fitting prepayment meters into the homes of over-85s and those with chronic illnesses under a new voluntary code of practice.

The regulator later extended this code in November 2023 to cover more households, as well as turning the code into mandatory rules for all suppliers. It means energy suppliers cannot fit prepayment meters into homes with an occupant:

• Over 75 years old and there is no other support in the house.

• Under two years old.

• In need of a continuous supply of energy for health reasons. This includes dependency on ventilators, refrigerated medication or people with severe health issues, such as emphysema or chronic bronchitis.

• Suffering from chronic or terminal illnesses, such as cancer, cardiovascular or respiratory disease or organ failure.

• Incapable of topping up the meter due to physical or mental incapacity.

The rules also state that vulnerability and affordability assessments must be carried out before force-fitting a prepayment meter for certain homes, including households with children under five-years-old and those that are temporarily considered vulnerable due to being pregnant or bereaved. Read the full rules in our Energy bill help guide.