Britain’s energy regulator and government are under fire for creating a “booming business” for loan sharks.
That’s the suggestion from former Prime Minister Gordon Brown, who urged the head of Ofgem to quit over the prepayment meter (PPM) scandal that was exposed last week.
A Times investigation showed that a bailiff firm contracted by British Gas forced prepayment meter installations into vulnerable people’s homes.
Mr Brown said Jonathan Brearley should “consider his position” on the ground that he failed “dismally” to protect customers, some of whom have been pushed into the hands of loan sharks.
In his latest intervention, in an article in The Independent, Gordon Brown, who served as Prime Minister from 2007 to 2010, expanded on his views saying: “At this time of reshuffles, the Ofgem regulator should consider his position for failing on his responsibilities to energy customers subject to the forced installation of prepayment meters.
“His official responsibility could not be clearer… So he and the now restructured Energy Department should immediately explain why instead of being on the side of the public, they have failed dismally to properly monitor and expose utility companies and their debt agents who, in the middle of the worst cost of living crisis for fifty years, have been breaking into the homes of impoverished customers.”
A government spokesperson told ELN: “We believe Ofgem has shown they understand the seriousness of the matter and we are backing them to take the necessary actions to protect consumers.
“We will continue to work closely with Ofgem to ensure they resolve the issues in the sector and that consumers get better treatment.”
An Ofgem spokesperson told ELN: “The allegations against British Gas are shocking. Ofgem is focused on protecting vulnerable customers and that’s why we acted swiftly to ask all suppliers to pause forced installations of prepayment meters whilst we conduct a deeper review into the issues.
“We have also launched a formal investigation into British Gas and we have banned them from installing any more PPMs by force until British Gas’ board can assure us that they can protect vulnerable customers.”
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