British Gas pays £20m over prepayment meter force-fitting scandal

British Gas has agreed to a record £112m settlement with regulator Ofgem over a scandal involving the forced installation of prepayment meters in the homes of vulnerable customers ^[1][2]. The settlement includes a £20m penalty and up to £70m in customer debt write-offs ^[1][2].

The regulator confirmed the agreement is the largest energy supplier settlement on record and follows a ban on fitting meters without consent in high-risk households ^[1][2]. An investigation found that up to 40,000 vulnerable customers had prepayment meters installed without their consent between 2022 and 2023 ^[1][2]. British Gas was first made aware of the forced installations in 2018 but did not suspend the practice until 2023 ^[1]. The scandal was industry-wide, with other major suppliers including npower, ScottishPower, EDF, and E.ON also found to have forced meters into homes over unpaid debts ^[2]. Ofgem's Tim Jarvis said the company "fell short in its treatment of an unacceptable number of vulnerable customers" ^[1]. British Gas owner Centrica's chief executive, Chris O'Shea, apologized, stating, "What happened should never have happened" ^[1]. Customers due compensation will be contacted directly and do not need to take action ^[1].