British gas to pay £112m in compensation for unfair prepayment meter installations

british Gas has agreed to pay out up to £112 million in compensation and debt write-offs to thousands of customers who had prepayment meters forcibly installed in their homes during the 2022 energy crisis.

Regulator finds widespread use of unfair tactics among energy suppliers

Ofgem, the UK's energy regulator, launched a probe after The Times revealed that British Gas agents had ignored signs of vulnerability to fit prepayment meters, forcing customers into debt. The investigation found that most major energy suppliers used similar tactics, with around 40,000 households collectively receiving over £18.6 million in redress.

Under the settlement, British Gas will pay a £20 million penalty into Ofgem's voluntary redress fund, write off £70 million in debt, and provide the remaining £22.4 million of a previously announced support package to customers with prepayment meters.