British Gas customers to receive up to £112m over prepayment meter scandal

Thousands of British Gas customers who had prepayment meters force-fitted in their homes will receive compensation and energy bill debt write-offs worth up to £112m after an investigation into the scandal. Great Britain’s energy regulator found that British Gas forced prepayment meters on homes that were not keeping up with their bills at the height of the Russian gas crisis, in one of the most complex Ofgem investigations in its history. Over three years after the scandal emerged , British Gas must pay a £20m penalty into Ofgem’s voluntary redress fund to compensate customers who suffered unfair treatment and write off debt worth up to £70m. The supplier will also continue to provide the remainder of a £22.4m voluntary support package that it launched in the wake of the scandal, which is aimed at supporting customers on prepayment meters (PPMs). Tim Jarvis, Ofgem’s chief executive, said: “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. Because of our action customers will receive a substantial package of redress, compensation and debt write-off.” Ofgem temporarily banned the practice of forcing prepayment meters on households that missed repeated payments on their bills after the Times reported in early 2023 that debt agents working for British Gas had ignored signs of vulnerability to fit the meters. …