British Gas is to pay £20m over its treatment of customers who had a prepayment meter forcibly installed.
It comes as an investigation by energy regulator Ofgem found the supplier failed to meet standards required when installing prepayment meters, and that it breached licence conditions designed to protect vulnerable customers.
Up to £70m of energy debt will also be written off as part of the agreement.
The regulator described the investigation as one of the most detailed and complex in its history.
What happened?
Some vulnerable customers who were in energy bill arrears had their homes broken into so that agents acting for the utility company could install a pre-payment meter.
The practice took place between February 2018 and February 2023, when it was stopped, having been uncovered by The Times newspaper.
“It was clear that some customers who had an involuntary prepayment meter installed were not treated with the care and respect that they deserved,” British Gas said on Friday.
“There were also errors in identifying some customers in vulnerable situations who should have been excluded,” it added.
Compensation
Some compensation to affected customers has already been paid, while more has been agreed.
British Gas said it would now undertake a comprehensive review of its customer records and provide redress and compensation wherever possible for affected customers.
Customers do not need to take any action and will be contacted directly by British Gas.
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