Prepayment Meters
Suppliers of heat to domestic consumers. Section B applies where heat is supplied to domestic consumers. A network serving only non-domestic consumers is not subject to it.
What this condition requires
Where a Domestic Consumer asks to pay by Prepayment Meter or you offer it, the terms in 10.1 apply. Before installing a Prepayment Meter or switching an existing Supply Meter to Prepayment Mode, the restrictions in 10.2 and 10.8 to 10.11 apply. Where a Domestic Consumer uses a Prepayment Meter you must assess, and keep assessing, whether it is safe and reasonably practicable in all the circumstances (10.3), contacting the consumer in a form that takes account of their communication preferences (10.4); the expression is interpreted per Ofgem guidance (10.5). Take all reasonable steps to ensure the meter is reasonably accessible and reliable (10.6). Prepare and make available a plain-language statement of your obligations (10.7). Involuntary installation or switching is subject to the further restrictions in 10.8 to 10.11, including prohibited categories of occupant (10.11); a transitional exemption applies by network size (10.12), and 10.13 sets out the required considerations. Where 10.8 to 10.11 conflict with another condition, they prevail (10.14). Debt recovery must be proportionate (10.15). Once the consumer has repaid, offer information on the safety and practicability assessment, alternative payment methods and tariffs, and the option to move — and if they choose to move, act as set out in 10.17 (10.16-10.17).
The condition in full
Reproduced from Ofgem’s Heat Network Authorisation Conditions decision, January 2026, Appendix 2.
Information about Prepayment Meters
10.1 If the authorised person offers to enable a Domestic Consumer to pay or a Domestic Consumer asks to pay Charges through a Prepayment Meter, the authorised person must provide, within a reasonable period of time prior to the installation of a Prepayment Meter or the switching of an existing Supply Meter to a Prepayment Mode such that it then operates as a Prepayment Meter, appropriate information to that Consumer about:
10.1.1 the advantages and disadvantages of a Prepayment Meter;
10.1.2 information relating to the operation of the Prepayment Meter, including information about the process for, and methods by which, the Domestic Consumer can pay in advance through the Prepayment Meter;
10.1.3 where they may obtain information or assistance if:
(a) the Prepayment Meter is not operating effectively; or
(b) any device used to allow the Charges to be paid through the Prepayment Meter
is not operating effectively;
10.1.4 the authorised person's Emergency Credit, Friendly-hours Credit, Additional Support Credit and Prepayment Meter Credit facilities, as more fully described in authorisation condition B11 (Self-Disconnection); and
10.1.5 the procedures that the authorised person will follow when removing or resetting the Prepayment Meter, including the timescale and any conditions for removing or resetting it.
Safety and reasonable practicability of Prepayment Meters
10.2 Without prejudice to the operation of any other restriction which may apply under other paragraphs of this authorisation condition, including paragraphs 10.8 to 10.11, where:
10.2.1 the authorised person proposes to install a Prepayment Meter or to switch an existing Supply Meter to a Prepayment Mode such that it then operates as a Prepayment Meter; and
10.2.2 the authorised person becomes aware or has reason to believe that it is not safe and reasonably practicable in all the circumstances of the case for the relevant Domestic Consumer to use the relevant Prepayment Meter (as proposed),
the authorised person must not proceed with such installation or switching unless it has made such arrangements as are necessary to ensure that it would be safe and reasonably practicable in all the circumstances of the case for the relevant Domestic Consumer to use a Prepayment Meter.
10.3 Where a Domestic Consumer uses a Prepayment Meter (including as a result of an installation or switching of the kind described in paragraph 10.9) and the authorised person becomes aware or has reason to believe that it is not safe and reasonably practicable in all the circumstances of the case for the Domestic Consumer to continue using that Prepayment Meter, the authorised person must offer:
10.3.1 to alter the position of, or replace with a suitable, alternative one, the Prepayment Meter installed in the relevant Domestic Premises, if it would make it safe and reasonably practicable in all the circumstances of the case for the Domestic Consumer to continue to use a Prepayment Meter;
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10.3.2 to make such other arrangements as are necessary to ensure that it would be safe and reasonably practicable in all the circumstances of the case for the Domestic Consumer to continue to use a Prepayment Meter; or
10.3.3 a facility for the Domestic Consumer to pay Charges through a means other than a Prepayment Meter, including, where paragraph 9.3 of authorisation condition B9 (Security Deposits, Payment Difficulties, Disconnections and Direct Debits) applies, the services referred to in paragraph 9.6.1 (a) of that authorisation condition.
10.4 In complying with paragraph 10.3, the authorised person must contact the Domestic Consumer, in a Form that takes into account their communication preferences, as a minimum, on an annual basis, to assess whether it remains safe and reasonably practicable in all the circumstances of the case for the Domestic Consumer to continue using the relevant Prepayment Meter.
Prepayment Meter guidance
10.5 The expression "safe and reasonably practicable in all the circumstances of the case" is to be interpreted in accordance with any guidance which the Authority may issue in relation to Prepayment Meters.
Resetting of Prepayment Meters
10.6 Where a Domestic Consumer pays Charges through a Prepayment Meter, the authorised person must take all reasonable steps to ensure that the meter is reset within a reasonable period of time:
10.6.1 after any change is made to Charges; or
10.6.2 if payments are being made by instalments using the meter:
(a) after any change is made to the amount due in instalments; or
(b) after instalments are no longer required.
Provision of information
10.7 The authorised person must:
10.7.1 prepare a statement that sets out, in plain and intelligible language, its obligations under this authorisation condition;
10.7.2 publish that statement on and make it readily accessible from its Website (if it has one);
10.7.3 take all reasonable steps to inform each of its Domestic Consumers who pay Charges through a Prepayment Meter, at least once each year, of the statement and how to obtain it; and
10.7.4 give a copy of the statement on request and free of charge to any person.
Installation or switching without Explicit Consent
10.8 Where the installation of any Prepayment Meter or the switching of an existing Supply Meter to operate in a Prepayment Mode such that it then operates as a Prepayment Meter would require the authorised person or any relevant installer or other person acting on behalf of the authorised person to gain access to the relevant Domestic Premises, the authorised person must ensure that such installation or switching is not effected unless the relevant Consumer has given their Explicit Consent to this.
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10.9 Without prejudice to the operation of any other restriction which may apply under paragraph 10.10 or paragraph 10.11, where:
10.9.1 the installation of a Prepayment Meter or the switching of an existing Supply Meter to a Prepayment Mode such that it then operates as a Prepayment Meter can be effected without gaining access to the relevant Domestic Premises; but
10.9.2 the relevant Domestic Consumer has not given their Explicit Consent to such installation or switching,
the authorised person must ensure that such installation or switching is not effected unless all of the following requirements are met:
10.9.3 the Debt Trigger has been met;
10.9.4 the authorised person has made multiple attempts to engage with the relevant Domestic Consumer;
10.9.5 the authorised person has in respect of the relevant Domestic Consumer complied with its obligations to Domestic Consumers in payment difficulty (including under authorisation condition B9 (Security Deposits, Payment Difficulties, Disconnections and Direct Debits);
10.9.6 appropriate Site Welfare Visits have been carried out;
10.9.7 the authorised person has determined that use of the relevant Prepayment Meter would be safe and reasonably practicable in all the circumstances of the case (including by reference to the Precautionary Principle, and having carried out checks of all relevant information relating to the Priority Services Register); and
10.9.8 prior to the relevant installation or switching being effected, the authorised person has provided a reasonable amount of advance notice in Writing to the relevant Domestic Consumer, explaining in a reasonable level of detail in the relevant notice what the impact of the relevant installation or switching will be on the way in which the Domestic Consumer is required to pay for their supply of heating, cooling or hot water.
10.10 Subject to paragraph 10.12, where:
10.10.1 the installation of a Prepayment Meter or the switching of an existing Supply Meter to a Prepayment Mode such that it then operates as a Prepayment Meter can be effected without gaining access to the relevant Domestic Premises; but
10.10.2 the relevant Domestic Consumer has not given their Explicit Consent to such installation or switching,
the authorised person must ensure that such installation or switching is not effected, in Winter, at a Domestic Premises if the authorised person knows or has reason to believe that the occupants of the premises include a person who is under the age of 2 or is over the age of 75, disabled, terminally ill or chronically sick.
10.11 If the authorised person knows or has to reason believe that the occupants of a Domestic Premises include any of the following persons:
10.11.1 a person who has a medical condition which means that, for medical reasons, they need to receive or may need to receive a supply of heating or hot water throughout the year;
10.11.2 a person who has a serious mental or developmental disability;
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10.11.3 a person who is under the age of 5; or
10.11.4 a person who is temporarily in a Vulnerable Situation due to being pregnant or for another health related reason,
then where:
10.11.5 the installation of a Prepayment Meter or the switching of an existing Supply Meter to a Prepayment Mode such that it then operates as a Prepayment Meter can be effected without gaining access to the relevant Domestic Premises; but
10.11.6 the relevant Domestic Consumer has not given their Explicit Consent to such installation or switching,
the authorised person must ensure that such installation or switching is not effected unless the authorised person has carried out a vulnerability assessment in respect of the occupants of the relevant Domestic Premises and has determined to its reasonable satisfaction that use of the relevant Prepayment Meter would not have a significant impact on the wellbeing of any of those occupants.
10.12 For a transitional period, paragraph 10.10 will not apply to any relevant heat network in respect of which the total number of individual premises being supplied, or capable of being supplied, with heating, cooling or hot water by means of that network is 10 (ten) or fewer.
10.13 In relation to any installation or switching of the kind described in paragraph 10.9, the authorised person:
10.13.1 when considering the relevant Domestic Consumer's ability to pay and conducting financial assessments, must accept any information relevant to the subject matter of paragraph 10.9;
10.13.2 must accept information from and actions on behalf of the relevant Domestic Consumer by any person or organisation to act on their behalf;
10.13.3 must not link any staff incentives to the number of installations;
10.13.4 must ensure that Site Welfare Visits include the use of audio recording equipment or body cameras;
10.13.5 must ensure that post installation aftercare support is provided; and
10.13.6 must retain any assessment documentation and audio or body camera recordings for an appropriate period.
Other Prepayment Meter related obligations
10.14 The authorised person must comply with any other obligations relating to Prepayment Meters (including but not limited to those in authorisation condition B9 (Security Deposits, Payment Difficulties, Disconnections and Direct Debits)). In the event of any irreconcilable inconsistency between paragraphs 10.8 to 10.11 and any other authorisation condition or any other provision made under them, paragraphs 10.8 to 10.11 shall prevail.
Proportionality principle for debt recovery activities
10.15 In relation to the recovery of Outstanding Charges, Other Outstanding Charges or any other debt from a Domestic Consumer, the authorised person must ensure that:
10.15.1 any action it or a Representative takes (including the exercise of any applicable statutory powers); and
10.15.2 the costs which they seek to recover from that Domestic Consumer as a result,
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are proportionate in the context of the amount of the Outstanding Charges, Other Outstanding Charges or other debt as applicable.
Debt completion assessment
10.16 Where a Domestic Consumer who is using a Prepayment Meter as a result of an installation or switching of the kind described in paragraph 10.9 has repaid all debt owed, the authorised person must ensure that such Domestic Consumer is contacted and offered:
10.16.1 an assessment of whether a Prepayment Meter remains the most appropriate payment method (including in accordance with paragraph 10.4 and any guidance issued under paragraph 10.5);
10.16.2 appropriate information on alternative payment methods and tariffs; and
10.16.3 the option to move to an alternative payment method.
10.17 If the relevant Domestic Consumer decides, pursuant to paragraph 10.16 to move to an alternative payment method, the authorised person must:
10.17.1 agree to and implement this change as soon as reasonably practicable, subject to required credit checks; and
10.17.2 ensure that any Security Deposit required as part of this process does not exceed a reasonable amount.
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Does this apply to you?
Section B applies where heat is supplied to domestic consumers. If every consumer on your network is non-domestic, this condition does not apply. The registration checker works out your full set in a few questions. Registration closes on 26 January 2027.