British Gas to pay £112m over meter failures

British Gas has agreed to a major compensation package after an Ofgem investigation into the forced installation of prepayment meters in vulnerable households. The energy supplier will pay £20 million into a redress fund and write off substantial customer debt following findings that it breached regulatory standards.

Ofgem’s probe concluded that British Gas installed prepayment meters without proper consent, including in homes where customers were already in financial difficulty. The regulator identified serious failings in the company’s treatment of vulnerable customers, triggering enforcement action and the redress package.

Under the agreement, British Gas will contribute £20 million to a redress fund designed to compensate customers affected by improper prepayment meter practices. This fund forms the core financial penalty arising from the regulator’s investigation into the firm’s conduct.

In addition to the cash payment, British Gas will write off up to £70 million of energy debt owed by vulnerable customers. Combined, the compensation payments and debt cancellations could reach a total value of £112 million for those impacted by the failures around prepayment meters.

Ofgem found that British Gas breached standards aimed at protecting consumers when it proceeded with the forced fitting of prepayment meters. The practices identified by the regulator particularly affected customers who were already struggling to pay their bills, leaving them at greater risk of disconnection and hardship.

The investigation highlighted that meters were installed without sufficient checks on customers’ circumstances or adequate consent procedures. Ofgem described the failings as serious, underlining the need for tighter oversight of how suppliers deal with households in vulnerable situations.

British Gas has publicly apologised for its handling of prepayment meter installations and acknowledged shortcomings in how some customers were treated. The company has accepted Ofgem’s findings and the associated financial redress, signalling a commitment to address the issues uncovered by the investigation.

As part of its response, British Gas has committed to improving internal practices to ensure better protections for vulnerable customers. The resolution of the case is intended to strengthen standards around consent, affordability checks and support measures before any move to install prepayment meters in the future.