British Gas Pays £20m to Settle Ofgem Probe Into Forced Prepayment Meters

British Gas has agreed to pay £20 million into a redress fund to settle a regulator's investigation into the forced installation of prepayment meters.

Three years ago, debt agents for British Gas broke into homes of vulnerable customers to fit prepayment energy meters. Ofgem said British Gas, which apologized for the scandal, will also write off up to £70 million of those customers' energy debt. Some of the funds could serve as compensation.

Ofgem's investigation found that British Gas failed to meet required standards for installing prepayment meters. The company breached licence conditions meant to protect vulnerable customers.

Chris O'Shea, boss of British Gas owner Centrica, apologized to affected customers. "What happened should never have happened," he said.

He added that when the problems surfaced, the company stopped the activity right away and took quick steps to improve processes and change debt collection methods, especially for vulnerable customers.

"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."

In 2023, the Times reported that agents from Arvato Financial Solutions, acting for British Gas, forced entry into a single father's home to install a prepayment meter. An undercover reporter watched after agents confirmed the property was empty. They worked with a locksmith to get in and fit the meter.

Debt agents expressed excitement about installing such meters in vulnerable people's homes behind on bills, the report said.

"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."