Customers hit as suppliers seek to recover costs of PPM ban

The Committee on Fuel Poverty opposes Ofgem’s plan to allow suppliers to recover costs related to the moratorium on involuntary PPM installations

The Committee on Fuel Poverty (CFP) has expressed concern over Ofgem’s consultation on allowing suppliers to recover costs related to the moratorium on involuntary PPM installations.

The moratorium was implemented in February after reports of non-compliance by suppliers, notably British Gas.

The CFP argues that reimbursing suppliers for costs during the moratorium would effectively penalise consumers for supplier failures and go against efforts to protect vulnerable customers.

The government’s advisor on fuel poverty acknowledges the need for suppliers to recoup costs when customers default on bills but opposes including moratorium-related costs in the adjustment.

It emphasises that the moratorium was essential to ensure fair treatment of vulnerable customers and that suppliers should have already implemented steps, such as leaving customers on supply after involuntary installations.

The committee underscores Ofgem’s estimate of £25 million per month in additional debt-related costs during the moratorium and argues against passing these costs onto consumers.

It asserts that such an uplift would reward suppliers for regulatory non-compliance and introduce policies that should have been in place earlier.

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