British Gas will pay £20 million after regulators found the energy supplier systematically forced prepayment meters onto vulnerable customers without proper consent. The penalty comes from Ofgem, the UK's energy regulator, which determined the company breached its licence conditions by fitting meters to households that qualified for consumer protections.
The scandal centers on British Gas installing prepayment meters remotely and in person, often targeting low-income families and elderly customers who faced disconnection threats. These customers typically lack alternatives and face higher per-unit energy costs through prepayment systems. Ofgem found British Gas failed to follow required procedures before installing meters, sidestepping safeguards designed to protect people in vulnerable circumstances.
The regulator's investigation covered conduct between 2017 and 2020, revealing patterns of aggressive meter installation tactics. British Gas executives knew the company wasn't following proper notification and consent protocols yet continued the practice, racking up violations across tens of thousands of customer accounts.
Beyond the £20 million fine, British Gas must compensate affected customers individually. The company has committed to identifying households who received improper meter installations and offering redress, though the total compensation figure remains unclear pending a full audit.
This enforcement action reflects growing pressure on British utilities to protect vulnerable consumers, particularly as energy bills surge across the UK. Ofgem has positioned itself as an active regulator willing to penalize large suppliers for systematic breaches. British Gas, owned by Centrica, faces reputational damage alongside financial penalties. The case reinforces that even dominant market players cannot ignore consumer protection rules without facing consequences.