British Gas agrees on £20m settlement over prepayment meters | Personal Finance | Finance
British Gas has agreed to pay a £20 million settlement, Ofgem said (Image: Getty)
British Gas has agreed to pay a £20 million settlement and compensate customers who had a prepayment meter installed without their permission, regulator Ofgem said. Regulator Ofgem said it has now closed its probe into the energy giant’s treatment of customers, including vulnerable households – one of the most detailed investigations in the watchdog’s history.
The regulator found British Gas failed to meet the standards expected of an energy supplier when installing prepayment meters and breached licence conditions designed to protect vulnerable customers. As part of the settlement, British Gas agreed to pay £20 million into Ofgem’s Voluntary Redress Fund.
The package will also see compensation handed to affected customers from 2018 to 2021, on top of payments already made between 2022 and 2023. British Gas has also agreed to write off up to £70 million of energy debt for vulnerable customers, continue a £22.4 million support package for prepayment meter customers and launch a new Vulnerable Customers Debt Advisory Panel.
Forced prepayment meter installations sparked outrage across the UK (Image: Universal Images Group via Getty Images)
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British Gas faced criticism in 2023 over the forced installation of prepayment meters in some homes.
The energy giant admitted it fell short in its treatment of vulnerable customers and pledged to improve its practices in future.
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.”
British Gas has agreed a £20 million settlement following Ofgem’s investigation (Image: NurPhoto via Getty Images)
The investigation involved a five-year review of British Gas policies and procedures, with evidence also gathered from Citizens Advice and the Energy Ombudsman relating to thousands of customer experiences.
Ofgem said the investigation into the five-year long policies and procedures had been one of the most complex in its history.
Tim Jarvis, the watchdog’s chief executive, said: “It is clear that British Gas fell short in its treatment of an unacceptable number of vulnerable customers who had a prepayment meter 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.”
Customers who are owed compensation will be contacted directly by British Gas and do not need to take any action.
