The Ofgem energy watchdog said on Friday that the ban on “switch only” tariffs, which are designed by companies to lure new customers, has been extended.
The ban means that energy companies will no longer be allowed to apply this tactic until March 2024.
According to Ofgem, the measure was taken to “further address the ongoing risks to market stability”.
“Ofgem modifies the permits for the supply of gas and electricity to households to reflect this and to allow both measures to be renewed annually,” said the watchdog.
Meanwhile, Ofgem has instructed suppliers to suspend the system of forced installation of prepayment meters at customers with payment arrears, PA said.
The request came after it became known that debt collectors working for Centrica PLC’s British Gas had entered the homes of vulnerable people.
This followed an investigation by The Times which showed how customers, including the disabled and the mentally ill, were forced by British Gas to use the pay-as-you-go meters, because otherwise their gas would be cut off.
Jonathan Brearley, Chief Executive of Ofgem, said he has “warned all domestic energy suppliers to put things in order regarding forced prepayment of meters”, while ordering the “largest ever market evaluation” of the meters to “reveal bad practices”.
He said: “I will not hesitate to take the strictest measures where necessary. It is good that British Gas has apologized after the very disturbing allegations in the Times, but millions of customers expect action and not nice words”.
He added that Ofgem is conducting an investigation into British Gas on this issue.
On Tuesday this week, British Gas said it would stop seeking court orders to enter customers ‘ homes and place meters with prepayment, following reports that these had been forced on “vulnerable” customers.
Energy companies can get court orders that give them the legal right to enter people’s homes and place meters with prepayment if customers have not paid their bills.
