British Gas has agreed to pay compensation to customers as part of a £20 million settlement after the energy regulator Ofgem found the company had installed prepayment meters in households without their permission. The investigation revealed that debt collectors were used to force-fit the meters, with some affected customers having disabilities or mental health issues. As a result, the company was banned from conducting forced installations in 2023.
Regulator's Statement
Tim Jarvis, chief executive of Ofgem, said: "It is clear that British Gas fell short in its treatment of an unacceptable number of vulnerable customers who had a PPM installed without consent, and it's right that they've taken action to put things right. The installation of prepayment meters under warrant should only be a last resort, with rigorous checks to ensure debt is recovered lawfully, proportionately and safely."
Reaction from Campaign Groups
Simon Francis, coordinator of the End Fuel Poverty Coalition, commented: "British Gas has finally been held to account for the forced pre-payment meters scandal. The results of the Ofgem investigation are truly shocking. They have confirmed that British Gas knew about these failings as far back as 2018, was warned again in 2021, and still did not take adequate action. That means the firm knowingly forced prepayment meters onto customers, potentially including those with disabilities and families with young children."
While the £20 million fine, combined with up to £70 million in debt write-offs, is a significant outcome to the investigation, it should not be mistaken for the end of this story. Francis added: "Households in energy debt are not there through choice. They are struggling because of five years of sky-high energy costs and an energy industry that has generated extraordinary profits while households suffer. We know that courts are still using batch processing to approve warrants for forced entry. We know customers are not given the right to defend themselves during this process. The forthcoming Energy Independence Bill must include provisions to end the forced installation of pre-payment meters and fundamentally reform the warrant process. This scandal must never happen again."
