Tories are accused of failing tens of thousands of victims of the prepayment meter scandal after it emerged 1,502 people have been compensated in a year.
Energy Secretary Claire Coutinho faces calls to explain why man people whose homes were broken into so the meters could be installed have not received a payment. In a blistering letter, Labour Shadow Energy Security Minister Ed Miliband hit out at the "grave injustice".
He demanded the Government clarifies when families waiting for compensation will finally receive it. He wrote: "During the worst energy security crisis in a generation, thousands of families saw forced entry into their homes to install PPMs. It is a grave injustice that - more than a year after the Conservative government promised compensation for all affected families- only 1% have received anything at all.
"You have now acknowledged that this is ‘completely unacceptable’ and that you would ‘like to see everybody get the compensation that they need’. The blame for this failure lies with you and your government."
Earlier this month, energy regulator Ofgem said just 1,502 people had been awarded compensation totalling £342,450. That is despite more than 150,000 installations being assessed by energy companies. But it said the overwhelming majority of claimants were not entitled to compensation.
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Labour's Ed Miliband accused Energy Secretary Claire Coutinho of being asleep at the wheel (PA)Mr Miliband's letter continued: "The scandal happened on your watch, you promised action and you have completely failed to make it happen. You have been asleep at the wheel. The British public deserve a government that will stand up for the families who struggled most when energy bills rocketed."
The scandal sparked public outrage last year, with the Government ordering energy firms to come up with a compensation package. In February 2023 Grant Shapps, who was Energy Secretary at the time, said: "I am appalled that vulnerable customers struggling with their energy bills have had their homes invaded and prepayment meters installed.
“There is a clear duty on suppliers to provide them with support. They need to refocus their efforts on the public who are at the receiving end of this abhorrent behaviour.“
Appearing on the BBC's Sunday with Laura Kuenssberg at the weekend, Ms Coutinho denied that thousands of people had been abandoned. She said the behaviour of energy firms had been "completely appalling", but admitted the speed of compensation had been "unacceptable".
Ms Coutinho said: "I have spoken to Ofgem about it, who are overseeing this, and I’ve made it clear that I want to make sure that the people can get the compensation as quickly as possible and that’s the steps that we’re taking next. We’re getting new figures in the coming months but we are ready to act to make sure that people can get that money."
Pressed on how long it would take for victims to receive payments, she said: "As soon as possible and like I said it’s Ofgem who are overseeing this, but I’ve been in contact with them, they’re going to come back with final figures and then we will see what further action we can take. But it is completely right that we get people that compensation."
She went on: "Well look I’d like to see everybody get the compensation that they need, that’s ultimately what we’ve got to try and do here."
A spokesman from the Department for Energy Security and Net Zero said: “It is wrong to suggest only 1% of those affected have been compensated - 150,000 cases of involuntary prepayment meter installations have been assessed so far but not all of these are entitled to compensation.
“In fact, so far more than half of people assessed as having had a prepayment meter wrongfully installed have received compensation, with suppliers planning payments for 1,000 more customers as soon as possible. The Energy Secretary has spoken with Ofgem about their responsibilities and we expect consumers to receive the compensation they deserve as quickly as possible."
An Ofgem spokesman said: “Following the practices uncovered last year, we told suppliers to review and independently audit every involuntary prepayment meter installation between January 2022 and January 2023, and compensate anyone who had a PPM wrongly installed. Of the 150,000 cases reviewed to date they have identified 2,500 where the rules were not followed. Compensation has been paid to 1,500 of those cases with 1,000 more to follow.
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“We continue to keep the situation under review and expect that our work with suppliers will uncover further cases. We are scrutinising and, where necessary, challenging levels of compensation in individual cases. We will provide a further update on the Market Compliance Review, including compensation payments, at the end of June.
“We have put tough new rules in place extending the protections for customers and increasing the number of households where a PPM should never be installed. If a customer feels they should have been compensated and they have not been, they must speak with their supplier. If they are not happy with the response they should escalate it to the independent Energy Ombudsman.”
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