Ofgem has imposed a £20m fine on British Gas, the largest supplier in the UK, for its role in the forced installation of prepayment meters in the homes of vulnerable customers. The penalty, announced on Tuesday, follows an investigation that revealed systematic failures in the company’s processes, including the use of debt collectors who broke into properties and installed meters without proper consent. The scandal, which came to light in early 2023, involved tens of thousands of households, many of which included individuals with mental health conditions, disabilities, or young children.
Ofgem’s investigation found that British Gas had failed to ensure that prepayment meter installations were carried out in compliance with its obligations under the supplier licence conditions. The fine, which includes a £19.5m penalty and a £500,000 payment to a redress fund, is one of the largest ever levied by the regulator.
British Gas has apologised and said it has since overhauled its practices, including ending the use of court warrants for forced installations. The company also announced a voluntary compensation scheme for affected customers. The case has drawn attention to the broader use of prepayment meters, which can leave households without heating or electricity if they cannot top up.
Ofgem has since introduced stricter rules requiring suppliers to take all reasonable steps to identify vulnerable customers before installing such meters. The fine is seen as a significant step in holding energy companies accountable for their treatment of customers during the cost-of-living crisis.
