British Gas to Compensate £112M for Meter Scandal

Overview of the Compensation Package

In a significant move, British Gas, owned by Centrica, has announced a compensation package totaling up to £112 million for customers affected by the prepayment meter scandal. This decision follows an extensive investigation by Ofgem, which uncovered that vulnerable customers had prepayment meters force-fitted in their homes without consent during the energy crisis.

The compensation includes:

• A £20 million penalty to Ofgem’s voluntary redress fund.
• Up to £70 million in debt write-offs for affected customers.
• Continuation of a £22.4 million support package aimed at assisting those on prepayment meters.

Tim Jarvis, Ofgem’s chief executive, emphasized the importance of protecting vulnerable customers and stated that the installation of prepayment meters should only occur as a last resort, ensuring that all actions are lawful and proportionate. This scandal has prompted a broader review of practices across the energy sector, highlighting the need for stricter regulations to prevent similar incidents in the future.