LONDON: UK utility company British Gas will pay millions to settle an investigation into forced installation of prepaid electricity meters, the country’s energy regulator Office of Gas and Electricity Markets (Ofgem) said Friday.
The company has agreed to pay £20 million into Ofgem’s voluntary compensation fund and write off up to £70 million in debt owed by vulnerable customers, including low-income households, disabled people, elderly people, and those in rural areas.
Ofgem tightened rules on the controversial practice after reports in 2023 that British Gas contractors sent debt collectors to enter homes and forcibly install prepaid electricity meters.
These meters require customers to pay for electricity in advance and can allow power disconnection when bills are not paid, raising concerns that vulnerable households were being targeted.
“British Gas fell short in its treatment of an unacceptable number of vulnerable customers who had a PPM installed without consent,” Ofgem chief executive Tim Jarvis said in a statement.
The regulator said British Gas has not carried out any forced meter installations since February 2023.
“What happened should never have happened, and I am sorry to the prepayment customers who were affected,” said Chris O’Shea, chief executive of Centrica, which owns British Gas.
