British Gas Cleared to Force-Fit Prepay Meters Again

Posted on in Corporate Scandals & Lawsuits Posted by

Delivered with our partners' help

British Gas can again install prepay meters in the homes of customers who cannot pay their bills. The regulator removed the restriction months after the supplier paid the largest settlement on record over its treatment of vulnerable customers.

The block is gone

The restriction had stood for almost four years. It stopped British Gas from recovering unpaid bills by fitting such meters. The block ended after the company's settlement with the regulator, worth more than £100m, over the prepay scandal of the Russian gas crisis.

From this winter, British Gas agents can force-fit meters under warrant. Households are expecting some of the highest energy bills since 2023, the year the supplier first came under fire.

The earlier scandal

A Times investigation found that debt agents working for British Gas at the time ignored signs of vulnerability when fitting meters, including in homes of people with severe mental health issues and physical disabilities.

The scandal drew anger from fuel poverty campaigners and across Whitehall. The government was then spending billions on bill support to stop suppliers failing.

Less than a year on, the regulator let some suppliers resume forced fittings by lifting its sector-wide ban. Forced fittings in homes with young children or with people over 75 remain banned.

Rules and reactions

Suppliers must make at least 10 attempts to reach a customer and carry out a welfare visit before fitting a meter. The highest-risk households should never get one. That group covers people over 75, children under two, and those with severe health conditions or medical equipment.

The regulator said a warrant installation "should only be a last resort, with rigorous checks to ensure debt is recovered lawfully, proportionately and safely". It added that it will act if suppliers break the rules.

British Gas defended its plan to recover unpaid bills. Household energy debt is forecast to exceed £7bn, which would add more than £80 to the average bill. The company said involuntary fittings would stay a last resort, with early engagement and flexible repayment plans offered first.

Simon Francis of the End Fuel Poverty Coalition was critical. "It's almost as if regulators and ministers are failing to remember the lessons of the last energy price spike," he said. He noted that magistrates still approve bulk batches of warrant applications.

A government spokesperson called it a regulatory decision and said ministers are watching to make sure companies follow the rules.

Our Take

The test comes in the first winter of fittings. Both the company and the regulator promise checks, yet campaigners say some failures from the original investigations still occur. Whether the checks hold under pressure will show in warrant numbers and in any complaints that reach the regulator.

Source: the Guardian