WINDSOR (dpa-AFX) - Centrica plc (CNA.L) on Friday said its unit British Gas Trading Limited has agreed to pay £20 million into the UK energy regulator Ofgem's Voluntary Redress Fund following an investigation into its past prepayment meter installation practices.
The payment settles Ofgem's probe into the company's handling of warrant-based forced meter installations between 2018 and 2023.
British Gas admitted that some customers were not treated fairly during the process, and also acknowledged errors in identifying vulnerable customers who should have been exempt from the process.
British Gas said it had apologised after issues emerged in 2023, stopped forced prepayment meter installations and ended the use of third-party debt recovery contractors. The company added that it has since introduced stronger safeguards for vulnerable customers.
The company also plans to compensate affected customers from 2018 to 2021, in addition to payments already made for 2022 to 2023, and write off up to £70 million in energy debt for vulnerable customers.
Further, British Gas said it will establish a Vulnerable Energy Customers Debt Advisory Panel for 24 months to help support vulnerable customers in debt, as customer energy debt across the sector is projected to rise to around £7 billion later this year.
Since the 2022 energy crisis, the company said it has provided £140 million in targeted customer support, including £22.4 million for prepayment customers.
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