British Gas to Pay £20m Redress After Ofgem Finds 40,000 Forced Prepayment Meter Installs

Context Prepayment meters require households to pay for energy before they use it, either by topping up a key, smart card or online account. Ofgem launched an investigation after reports that British Gas agents entered homes without permission to fit these meters, sometimes using locksmiths. The regulator said the practice breached licence conditions designed to protect vulnerable customers and banned it for high‑risk households in 2023.

Key Facts The redress fund totals £20m. The broader settlement package may cost British Gas up to £112m, covering compensation, debt write‑offs and other support.

Between 2022 and 2023, 40,000 customers had a prepayment meter fitted without their agreement. The settlement also includes compensation for affected customers from 2018 to 2021, writes off up to £70m of energy debt for vulnerable households and funds a Vulnerable Customers Debt Advisory Panel within the company.

What It Means Affected customers will receive automatic payments and do not need to apply. The fine signals Ofgem’s willingness to enforce strict rules on meter installation and may prompt other suppliers to review their practices. British Gas has said it stopped the activity immediately, improved processes and introduced safeguards.

What to watch next Ofgem will monitor compliance with the ban on non‑consensual prepayment meter installs and may publish follow‑up reports on industry‑wide adherence.