British Gas agrees £20M redress for unauthorised prepay meters

British Gas has agreed to pay 20 million pounds into a redress fund and provide compensation to thousands of customers who had prepayment meters installed without permission between 2018 and 2021, the energy regulator Ofgem announced following a lengthy investigation.

The settlement, one of the most complex probes in Ofgem's history, also requires the supplier to write off up to 70 million pounds in energy debt for vulnerable customers. This comes on top of compensation already provided to those affected in 2022 and 2023, along with the continuation of a 22.4 million pound voluntary support package for prepayment meter users. Affected customers will be contacted directly by British Gas and do not need to take further action.

Ofgem found that British Gas failed to meet required standards and breached license conditions designed to protect vulnerable households, such as those with chronic illnesses, mental health issues, young children or elderly residents. The issue surfaced publicly in early 2023 after reports revealed debt collection agents entering homes of vulnerable people, including those with disabilities, to forcibly install meters using court warrants.