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UK Energy Secretary: Forced PPM compensation numbers unacceptable

Claire Coutinho has stressed the need for prompt action in resolving the issue and has collaborated with the regulator to accelerate compensation procedures

Energy Secretary Claire Coutinho has criticised the inadequate compensation payouts for individuals wrongly placed on prepayment meters.

Out of 150,000 assessed cases, only 1,500 have received financial redress from energy suppliers.

When questioned by Laura Kuenssberg on Sunday about whether the government was “abandoning” thousands of affected individuals due to the limited compensation payouts thus far, Ms Coutinho firmly denied, stating, “No, absolutely not.”

The Energy Secretary underscored the gravity of the situation, deeming it “completely unacceptable.”

Ms Coutinho emphasised urgency in addressing the situation and has engaged with the energy regulator to expedite compensation processes.

However, energy suppliers estimate that only about 2,500 individuals are entitled to compensation.

Responding to concerns, Ms Coutinho reassured that the government is not neglecting affected individuals.

Ofgem, the energy regulator, confirmed that suppliers reviewed approximately 150,000 cases, identifying over 2,500 eligible for payouts.

Initial compensation payments totalling £342,450 have been distributed to 1,502 customers, with an additional £200,000 set aside for another 1,000 individuals.

Ofgem mandated energy suppliers to review cases of individuals forced onto prepayment meters between January 2022 and January 2023 to determine compensation eligibility.

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