British Gas pays £20m to settle probe into force-fitting of prepayment meters

British Gas has agreed to pay £20m into a redress fund to settle an investigation by the regulator into the forced fitting of prepayment meters.

Three years ago it emerged that debt agents working for British Gas had broken into the homes of vulnerable customers to fit prepayment energy meters.

The regulator Ofgem said British Gas, which has apologised for the scandal, would also write off up to £70m of vulnerable customers' energy debt, some of which could be used as compensation.

Ofgem investigated and subsequently banned the practice of fitting prepayment meters without customers' permission in high-risk households.

Ofgem said its investigation found that British Gas had "failed to meet the standards required" of a supplier when installing prepayment meters, and it had breached licence conditions "designed to protect customers in vulnerable situations".

The boss of British Gas owner Centrica, Chris O'Shea apologised to those customers affected, saying: "What happened should never have happened."

He added that when the problems emerged the company "stopped the activity immediately and took rapid action to improve our processes and change how we engage with customers in debt, particularly those in vulnerable situations".

"Over the last three years, we have treated this matter with the seriousness it deserves and have made changes to our practices and put safeguards in place to ensure we deliver the standards our customers have every right to expect."

In 2023, the Times revealed how agents working for Arvato Financial Solutions, on behalf of British Gas, had forced their way into the home of a single father of three to install a prepayment meter.

After establishing the property was unoccupied, an undercover reporter observed the agents work with a locksmith to force their way in and install a meter.

Debt agents were said to have expressed excitement at putting such meters in the homes of vulnerable people behind on bills.

Ofgem chief executive Tim Jarvis said British Gas "fell short in its treatment of an unacceptable number of vulnerable customers".

"The installation of prepayment meters under warrant should only be a last resort, with rigorous checks to ensure debt is recovered lawfully, proportionately and safely."

Ofgem said that customers who are due compensation would be contacted and do not need to take any action.