British Gas has agreed to a £20 million settlement with Ofgem after the energy regulator concluded an investigation into the company's treatment of vulnerable customers. The investigation found that British Gas had “fell short in its treatment of an unacceptable number of vulnerable customers” by installing prepayment meters without proper consent.
Ofgem Investigation Findings
Ofgem’s investigation examined British Gas’s handling of customers who had prepayment meters (PPMs) installed without permission. The regulator determined that the energy supplier failed to meet the required standards and breached licensing conditions designed to protect vulnerable customers.
Settlement Terms
Under the settlement, British Gas, a subsidiary of Centrica, will pay £20 million into Ofgem’s Voluntary Redress Fund. Additionally, the company must compensate affected customers from 2018 to 2021, on top of compensation already paid for 2022 to 2023. British Gas will also write off up to £70 million of energy debt for vulnerable customers, some of which may be used as compensation, and continue its £22.4 million voluntary support package launched in 2023 for PPM customers.
New Advisory Panel
Ofgem will establish a Vulnerable Customers Debt Advisory Panel to assist British Gas in developing industry-leading practices for treating vulnerable customers in debt.
Tim Jarvis, chief executive of Ofgem, stated: “It is clear that British Gas fell short in its treatment of an unacceptable number of vulnerable customers who had a PPM installed without consent, and it’s right that they’ve taken action to put things right. 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.”
This is a developing story. Further updates will follow.
