British Gas has reached a settlement to pay £20 million in response to a prepayment meter scandal. As part of the agreement with energy regulator Ofgem, the company will also compensate affected customers. The issue arose three years ago when it was discovered that debt agents, acting on behalf of British Gas, had unlawfully installed prepayment energy meters in the homes of vulnerable customers.
The compensation will cover customers impacted between 2018 and 2021, as well as those affected in 2022 and 2023. British Gas has not disclosed the exact number of customers eligible for compensation or the total amount to be paid out. Additionally, the company will be writing off up to £70 million in energy debt for vulnerable customers.
Tim Jarvis, CEO of Ofgem, acknowledged British Gas’s failure in handling vulnerable customers who had prepayment meters installed without consent and praised the company’s corrective actions. Chris O’Shea, the group chief executive of Centrica, British Gas’s parent company, expressed regret over the incident and emphasized the company’s commitment to rectifying its mistakes. He highlighted the immediate actions taken to address the issues and improve customer engagement processes.
Dame Clare Moriarty, Chief Executive of Citizens Advice, commended the settlement with British Gas, underscoring the importance of holding energy suppliers accountable for their actions. She emphasized the need for real compensation for affected individuals and urged energy suppliers to prioritize consumer safety.
Simon Francis, coordinator of the End Fuel Poverty Coalition, criticized British Gas for its knowledge of the failings dating back to 2018 and its failure to take adequate measures despite warnings. While acknowledging the significance of the £20 million fine and debt write-offs, he stressed that the investigation’s closure should not mark the end of addressing the issue.
The resolution of the prepayment meter scandal serves as a reminder to energy suppliers to prioritize consumer welfare and adhere to regulatory standards.
