British Gas has agreed to a £20 million settlement following a prepayment meter scandal. The company will compensate affected customers as part of an agreement with the energy regulator, Ofgem. This decision comes after British Gas faced criticism for allowing debt agents to unlawfully install prepayment energy meters in vulnerable customers’ homes three years ago.
The compensation will cover customers impacted between 2018 and 2021, as well as those affected in 2022 and 2023. British Gas did not disclose the exact number of customers receiving compensation or the total amount. Additionally, the company will write off up to £70 million in energy debt for vulnerable customers.
Tim Jarvis, CEO of Ofgem, stated that British Gas had failed in its treatment of vulnerable customers and acknowledged the need to rectify the situation through redress and compensation. 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 making amends for their mistakes.
Dame Clare Moriarty, Chief Executive of Citizens Advice, commended the settlement with British Gas, highlighting the importance of holding energy suppliers accountable for their actions. She emphasized the impact on vulnerable households who were left without heating due to the forced installation of prepayment meters.
Simon Francis, coordinator of the End Fuel Poverty Coalition, denounced British Gas for knowingly imposing prepayment meters on customers, including those with disabilities and families with young children. He stressed that while the financial penalties and debt write-offs are significant outcomes, the investigation’s closure should not mark the end of addressing these issues.
The agreement with British Gas serves as a warning to energy suppliers regarding consumer protection and the importance of providing proper support to vulnerable customers.