British Gas has agreed to a £20 million settlement following a prepayment meter scandal. The company will compensate customers as part of an agreement with the energy regulator, Ofgem. This settlement addresses issues dating back to 2018, impacting customers through 2023. British Gas will also write off up to £70 million in energy debt for vulnerable customers.
Ofgem CEO Tim Jarvis acknowledged British Gas’ failures in handling vulnerable customers who had prepayment meters installed without consent, emphasizing the importance of corrective actions. Centrica’s group chief executive, Chris O’Shea, expressed regret over the incident, highlighting the company’s commitment to rectifying mistakes and improving customer engagement practices.
Dame Clare Moriarty from Citizens Advice emphasized the significance of the settlement in addressing the prepayment scandal that left many vulnerable households without adequate heating. The End Fuel Poverty Coalition’s Simon Francis underscored the severity of British Gas’ actions, noting that while the penalties are substantial, the implications of the scandal extend beyond monetary fines.
The resolution signifies a step towards accountability in the energy sector, with stakeholders urging continued vigilance to prevent similar incidents in the future.