Mandatory PPM Code of Practice – Ensuring Compliance

The energy sector is continually evolving, adapting to the changing needs of consumers, economic landscapes, and regulatory stipulations. One recent, noteworthy shift in the UK energy market is Ofgem’s announcement concerning the Code of Practice for the involuntary installation of prepayment meters (PPMs). Here’s why this decision is so significant and what it means for energy suppliers and consumers alike.  

A Move from Voluntary to Mandatory: 

Historically, the PPM Code of Practice was a voluntary agreement signed by energy suppliers in April 2023. The main objective was to safeguard vulnerable customers by preventing the forceful installation of PPMs in specific cases, such as homes with residents aged 85 and over. However, as part of Ofgem’s continuous efforts to enhance consumer protection, the voluntary agreement has become binding. Consequently, non-compliance with the Code can result in substantial enforcement actions, fines, and potentially lasting reputational damage for energy suppliers. 

Broadening the Protective Umbrella: 

With the mandatory nature of the Code, Ofgem has further expanded its protective measures. The no-install rule now encompasses consumers aged 75 and over without support in the household and homes with children under 2. Such a move ensures that a larger portion of vulnerable households will be shielded from potential energy supply challenges this winter. 

Compliance and Optimisation in the Spotlight: 

For energy suppliers, this shift emphasises the need for rigorous compliance measures. It’s not just about following the rulebook but understanding the spirit behind these regulations. It also calls for adapted debt management procedures for these customers. Engage Consulting, with our specialised Compliance and Optimisation Consulting services, can add real value in helping suppliers navigate this regulatory landscape. Ensuring that the energy supply chain remains compliant and efficient is paramount in this new era of increased scrutiny. 

The Road Ahead: 

As the sector evolves, proactive compliance and operational optimisation will be the keystones of successful energy supply businesses. It will be essential for suppliers to embrace these changes, and partnering with experienced consultants can help smooth this transition. 

Ofgem’s decision to make the PPM Code of Practice mandatory marks a critical step towards building a more resilient and consumer-centric energy sector in the UK. Contact us today for a discussion on how we could add real value to your organisation, whatever challenges you are facing. 

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