British Gas Pays Record £112m Over Meter Scandal
British Gas has agreed to pay up to £112m in a settlement. This is the biggest energy supplier settlement on record.
The company force-fitted prepayment meters on customers who could not pay their bills. This happened during the Russian gas crisis.
The UK energy regulator Ofgem found British Gas broke rules meant to protect vulnerable customers. The settlement includes a £20m fine paid to Ofgem.
Up to £70m will go toward wiping out customer debts. The rest covers direct payments to affected customers.
The activity under review took place between February 2018 and February 2023. British Gas's parent company Centrica said the settlement will not affect its 2026 financial plans.
Klear Note — Prepayment meters require customers to pay upfront before using gas. Vulnerable customers often struggle to afford these meters. Ofgem protects consumers from unfair energy company practices.
Key Terms 5
- Ofgem The UK government body that regulates energy companies
- prepayment meter A meter where customers pay for energy before using it
- force-fitted Installed without the customer's agreement
- settlement An agreement to pay money instead of going to court
- debt write-off When a company cancels money a customer owes