Centrica to pay £20m in redress over prepayment meter scandal

(Sharecast News) - Centrica unit British Gas has agreed to pay £20m in redress after debt collectors working on behalf of the company broke into the homes of customers - including residents who were vulnerable or had disabilities.

British Gas will also write off up to £70m of vulnerable customers' energy debt, some of which could be used as compensation, the company said in a statement on Friday.

The company will now review customer records "and provide redress and compensation wherever possible", including payouts to those affected during 2018-21 - in addition to the compensation already paid for the period 2022-23 - alongside the write‑off.

Regulator Ofgem investigated and subsequently banned the practice of fitting prepayment meters without customers' permission in high-risk households.

An investigation by the Times newspaper revealed how agents working for debt collector Arvato Financial Solutions forced their way into homes to install prepayment meters.

After establishing the property was unoccupied, an undercover reporter observed the agents work with a locksmith to force their way in and install a meter.

Reporting by Frank Prenesti for Sharecast.com

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