Martin lewis’ mse issues alert as thousands of households due up to £1,000

THE ENERGY REGULATOR OFGEM HAS ANNOUNCED THAT £5.6MILLION WILL BE PAID OUT BY EIGHT ENERGY COMPANIES TO 40,000 CUSTOMERS IN TOTAL, FOLLOWING A REVIEW 08:12, 02 Jun 2025 Martin Lewis’

MoneySavingExpert.com has issued an alert as tens of thousands of households who were forced onto an energy prepayment meter could be due up to £1,000 compensation. The energy regulator

Ofgem has announced that £5.6million will be paid out by eight energy companies to 40,000 customers in total, following a review. The suppliers will also write off a further £13million of

energy debt. The payments start at £40 or £60, rising to £250, £500 and £1,000. MSE explains: "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." The eight energy firms that are issuing the payments are: Scottish

Power, EDF, E.ON, Octopus, Utility Warehouse, Good Energy, Tru Energy and Ecotricity. GET THE BEST DEALS AND TIPS FROM MIRROR MONEY WHATSAPP GROUP: Get money news and top deals straight to

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shopping deals straight to your inbox. It comes after Ofgem launched an investigation into often vulnerable customers being switched to prepayment meters after they fell behind on bills

between January 1, 2022 to January 31, 2023. Article continues below Ofgem has said the compensation will be paid automatically into energy accounts and added that some customers will have

already been contacted by their supplier. 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, following an investigation by The Times which revealed how debt collectors had forced their way into homes to install

prepayment meters. 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. “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. Article continues below “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.”