British Gas owner Centrica will pay more than £90 million in fines and debt forgiveness after a UK regulator found it forcibly installed prepayment meters in the homes of vulnerable customers.
British Gas owner Centrica has agreed to a £20 million redress package and will write off £70 million in debt after regulator Ofgem concluded an investigation into the forced installation of prepayment meters in vulnerable UK homes between 2018 and 2023.
"It is clear that British Gas fell short in its treatment of an unacceptable number of vulnerable customers who had a PPM installed without consent," Ofgem said in a statement detailing the findings.
The settlement avoids a formal enforcement ruling and directs Centrica’s £20 million payment to Ofgem's voluntary redress fund, which supports vulnerable energy consumers. The company also committed to writing off up to £70 million in energy debt for affected households and will review cases dating back to 2018, potentially expanding compensation.
The penalty highlights the intense regulatory and political pressure on UK energy suppliers following the cost-of-living crisis. For Centrica, the financial impact is secondary to the reputational damage and the signal of a tougher regulatory stance that could affect the entire sector as consumer energy debt approaches a record £7 billion.
