British Gas apologies for controversy in which debt agents working on its behalf had broken into the homes of vulnerable customers to fit prepayment energy meters
British Gas has agreed to pay a £20million settlement after a prepayment meter scandal.
The supplier will also pay customers compensation after reaching an agreement with energy regulator Ofgem. It comes after British Gas was slammed when it emerged three years ago that debt agents working on its behalf had broken into the homes of vulnerable customers to fit prepayment energy meters.
The compensation will be for customers impacted in 2022 and 2023 as well as a period between 2018 and 2021. British Gas was unable to say how many would receive money and how much. The company is also writing off up to £70 million of energy debt for vulnerable customers.
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Tim Jarvis, CEO 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. Because of our action customers will receive a substantial package of redress, compensation and debt write off.”
Chris O’Shea, group chief executive of British Gas owner Centrica, said: “What happened should never have happened, and I am sorry to the prepayment customers who were affected. When we get things wrong, we make them right.
“When these issues came to light in 2023 – we apologised, stopped the activity immediately and took rapid action to improve our processes and change how we engage with customers in debt, particularly those in vulnerable situations.
“Over the last three years, we have treated this matter with the seriousness it deserves and have made changes to our practices and put safeguards in place to ensure we deliver the standards our customers have every right to expect. Providing help to those who need it most has always been a core part of what we do at British Gas, and this issue has been deeply felt by the many thousands of colleagues who work hard every day to do the right thing for our customers.”
Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “Three years ago our landmark report blew the whistle on the prepayment scandal. It revealed the sheer scale of the crisis, highlighting how suppliers were forcing prepayment meters on some of the most vulnerable households in the country. Today’s settlement with British Gas shows that kind of behaviour has serious consequences.
“Many of those affected were left without heat in the depths of winter because they couldn’t afford to top up. Those people deserve real compensation. This helps deliver that and serves as a warning to energy suppliers not to put consumers at risk.
“Without proper support, struggling families can be left in really dangerous situations. Ofgem must ensure the closure of this investigation is a step forward, not the final word.”
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “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 £20million fine, combined with up to £70million in debt write-offs, is a significant outcome to the investigation, it should not be mistaken for the end of this story.
