British Gas to pay £20m over forced prepayment meter scandal
British energy supplier British Gas will pay £20 million for breaching licence conditions by force-fitting prepayment meters to vulnerable customers. Regulator Ofgem's ruling adds compliance pressure across the wider sector.
Britain's energy regulator Ofgem found that British Gas breached licence conditions designed to protect vulnerable customers when court-ordered prepayment meters were force-fitted between 2022 and 2024. The company will pay direct compensation to roughly 67,000 affected customers and review its operating procedures.
Ofgem chief executive Jonathan Brearley called the ruling 'the toughest penalty yet aimed at rebuilding consumer trust at a time when fuel poverty is worsening'. British Gas said it had cooperated fully with the investigation, accepts the findings and will make senior management changes.
The decision opens the door to further scrutiny of EDF, Octopus and OVO on similar practices. Ofgem said it will issue updated guidance from 1 July to restrict prepayment meter conversions and apply tighter compliance oversight across the sector.
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