British Gas has agreed to a £20 million payout and compensation package after an Ofgem investigation found it failed to protect vulnerable customers by forcibly fitting prepayment meters without permission. The regulator said the supplier’s actions between 2018 and 2021 affected an unacceptable number of people.
Under the agreement, British Gas will also write off up to £70 million of energy debt for vulnerable customers. Those due compensation will be contacted directly and do not need to take action. The payout covers customers affected in 2018-21, on top of payments already made for 2022-23.
Ofgem chief executive Tim Jarvis said the installation of prepayment meters under warrant should only be a last resort. He added that the watchdog’s probe into five-year-long policies was one of the most complex in its history. British Gas apologised and said it has not force-fitted meters since February 2023.
Centrica chief executive Chris O’Shea expressed regret, stating that the company stopped the activity immediately when the issue came to light and improved processes. The scandal first emerged during the cost-of-living crisis, leading to a public outcry and a review of the practice.
