British Gas to pay £20m over prepayment meter force-fitting scandal
British Gas, one of the UK's largest energy suppliers, has agreed to pay £20 million in connection with allegations that it force-fitted prepayment meters at vulnerable customers' homes. The settlement with regulator Ofgem includes refunds and compensation for affected households. The scandal has revived debate over consumer protection and the risk of energy disconnection for vulnerable families.
British Gas, one of the UK's largest energy suppliers, has agreed to pay a total of £20 million in a settlement linked to allegations that it force-fitted prepayment meters at customers' homes. According to the BBC, part of the sum agreed with regulator Ofgem will be refunded directly to affected customers. The remainder will be channelled into energy support funds.
The prepayment meter system, which has operated under various brand names for decades, automatically cuts power when a customer's credit runs out and disproportionately affects low-income households. The scandal was thrust into the spotlight by a wide-ranging investigation launched by regulators in 2023, and probes of other suppliers are still ongoing. British Gas has apologised for the practices described in the settlement.
The decision lands at a politically sensitive moment, as UK energy bills continue to climb. Consumer groups are pressing for additional safeguards for vulnerable households, while Ofgem has said it will tighten enforcement to prevent similar complaints from recurring. A timetable for refunds to customers is expected over the coming months.
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