British Gas to Pay £112m in Compensation for Forced Prepayment Meter Installations

British Gas has been ordered to provide up to £112 million in compensation and debt write-offs to thousands of customers who had prepayment meters forcibly installed in their homes. The UK energy regulator, Ofgem, concluded a complex investigation finding that the supplier targeted vulnerable households struggling with bills during the height of the Russian gas crisis. The redress package includes a £20 million penalty paid into Ofgem’s voluntary redress fund, up to £70 million in written-off debts, and the continuation of a £22.4 million support package for affected customers. This settlement follows a temporary ban on forced installations implemented in 2023 after reports revealed that agents ignored signs of vulnerability. Tim Jarvis, Ofgem’s chief executive, emphasized that such installations should only be a last resort. Chris O’Shea, CEO of Centrica, which owns British Gas, apologized for the unacceptable treatment of customers and highlighted subsequent safeguards. This case mirrors similar findings against other major UK energy suppliers, reflecting broader regulatory efforts to strengthen consumer protections and ensure fair treatment within the energy market during periods of economic stress.