British Gas pays £20m over prepayment meter scandal

British Gas has agreed to pay £20m into a redress fund and compensate customers to settle an investigation by the energy regulator into the forced fitting of prepayment meters. Debt agents working for British Gas broke into the homes of vulnerable customers to fit prepayment energy meters. The company has apologised and the complete settlement package will cost up to £112m.

Investigation findings

Ofgem found that British Gas had 'failed to meet the standards required' when installing the meters and had breached licence conditions aimed at protecting customers in vulnerable situations. The regulator investigated after it emerged that debt agents working for British Gas had broken into the homes of vulnerable customers to fit prepayment meters. The scandal was industry-wide, with 40,000 customers having a prepayment meter installed without permission between 2022 and 2023.

Customer impact

Customers who had a prepayment meter installed without their permission will be compensated. Amber Chivers, a customer who had a prepayment meter installed without her permission, said it was 'a big shock and alarming' to find that workers had entered her home without notification. The boss of British Gas owner Centrica, Chris O'Shea, apologised to those customers affected, saying 'What happened should never have happened'.

Regulator response

Ofgem boss Tim Jarvis said that British Gas 'fell short in its treatment of an unacceptable number of vulnerable customers'. The regulator has banned the practice of fitting prepayment meters without customers' permission in high-risk households. Suppliers must now go to court to get a warrant to install a meter without consent and follow strict rules, including a welfare check.

Key points

• British Gas will pay £20m into a redress fund to settle the investigation
• The company will compensate customers who had prepayment meters installed without permission
• Up to £70m of vulnerable customers' energy debt will be written off
• British Gas has apologised for the scandal and will create a Vulnerable Customers Debt Advisory Panel
• 40,000 customers had prepayment meters installed without permission between 2022 and 2023
• Ofgem has banned the practice of fitting prepayment meters without customers' permission in high-risk households