British Gas Pays £20M to Settle Forced Prepayment Meter Scandal
BBC Business reported Friday that British Gas has agreed to pay £20m into a customer redress fund to settle a regulatory investigation into the unlawful force-fitting of prepayment energy meters in vulnerable households.
Energy regulator Ofgem concluded that the supplier failed to meet required standards during meter installations. It also found British Gas had breached specific licence conditions designed to shield customers in vulnerable circumstances.
What the Settlement Covers
The £20m redress payment forms part of a broader package that could cost the company up to £112m in total. That figure includes direct compensation to affected customers, writing off up to £70m of vulnerable customers’ energy debt, and completing a £22.4m voluntary support scheme for prepayment customers that British Gas launched in 2023.
The company will also establish a Vulnerable Customers Debt Advisory Panel. Ofgem said affected customers will be contacted directly and do not need to take any action themselves.
Background to the Scandal
The controversy first surfaced publicly in 2023, when the Times revealed that debt agents working on behalf of British Gas had broken into a single father’s home using a locksmith. An undercover reporter witnessed the forced entry and subsequent meter installation at the unoccupied property.
The problem proved industry-wide. Around 40,000 customers across multiple suppliers had prepayment meters installed without consent between 2022 and 2023. Rivals including EDF, E.On and Scottish Power had already agreed to pay compensation before this settlement.
Critically, Ofgem found British Gas had known about the issue since 2018, when an external review first flagged it. An internal audit raised concerns again in 2021. The company did not suspend the practice until 2023.
Ofgem Director General Tim Jarvis said British Gas “fell short in its treatment of an unacceptable number of vulnerable customers.” He stressed that warrant-based meter installations must only be a last resort, with welfare checks required before any forced entry.
Centrica Boss Apologises
Chris O’Shea, chief executive of British Gas parent Centrica, said the conduct was unacceptable and should never have occurred. He added that the company acted quickly once the problems surfaced and has since overhauled its processes for handling customers in debt.
Consumer advocates were less forgiving. Simon Francis, coordinator of the End Fuel Poverty Coalition, said the findings confirmed British Gas had ignored repeated warnings for years. He called on lawmakers to include provisions banning forced prepayment meter installations in the upcoming Energy Independence Bill.
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