British Gas to Pay Millions Over Prepayment Meter Scandal

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London: Following an in-depth investigation into the forced installation of prepayment meters in vulnerable households around Britain, British Gas owner Centrica has agreed to pay millions of pounds in compensation and debt relief.

British Gas will wipe off up to £70 million in customer debt and donate £20 million to a consumer redress fund, according to a Friday announcement from UK energy regulator Ofgem. This comes after investigators discovered that the company failed to sufficiently protect vulnerable customers between 2018 and 2023.

The controversy first came to light in 2023 when it was reported by the media that debt agents acting for British Gas had forced entry into homes, including those with elderly and disabled residents, to install prepayment meters. Public outrage and regulatory scrutiny of energy suppliers' treatment of low-income consumers resulted from the findings.

According to Ofgem, British Gas violated its licensing requirements by not conducting adequate welfare checks and by failing to make sure that clients were fully aware of the consequences of having prepayment meters placed.

Chris O'Shea, CEO of Centrica, voiced regrets for the company's actions, stating that British Gas had ceased forced installations as soon as the accusations were made and had since improved safeguards for vulnerable consumers.

The settlement, which is one of Ofgem's biggest enforcement proceedings against a UK energy company, coincides with wider worries about growing household energy debt as a result of the recent rise in fuel costs worldwide.