British Gas has agreed to pay £20 million into Ofgem's Voluntary Redress Fund to settle an investigation into prepayment meter installations, according to Centrica plc.
The probe covered installations under warrant between February 2018 and February 2023. Ofgem found issues in 2023 regarding vulnerable customers being wrongly subjected to involuntary prepayment meters.
British Gas stopped involuntary installations in 2023 and ended the use of third-party contractors for field debt recovery. The company has not resumed warrant-based installations.
British Gas will review customer records, provide redress, and write off up to £70 million in energy debt for vulnerable customers. Affected customers will be contacted directly.
Centrica CEO Chris O'Shea apologized, stating: "What happened should never have happened."
