British Gas has agreed to a £20 million payout as part of an agreement with the energy regulator Ofgem to resolve a scandal involving forced installation of prepayment meters. The company will also write off up to £70 million worth of debt for affected vulnerable customers, according to Tim Jarvis, CEO of Ofgem.
"British Gas fell short in its treatment of an unacceptable number of vulnerable customers who had a PPM installed without consent," said Tim Jarvis, CEO of Ofgem. "It's right that they've taken action to put things right."
The scandal emerged three years ago when debt agents working for British Gas were found breaking into homes of vulnerable customers to fit prepayment meters during the Russian gas crisis.
"This should never have happened," Chris O'Shea, group chief executive of Centrica (which owns British Gas), said in a statement. "When we get things wrong, we make them right."
The compensation package includes not only financial redress but also support for customers impacted between 2018 and 2023, with up to £70 million written off as energy debt.
With this settlement, British Gas aims to address the significant issues that arose from its handling of vulnerable customer accounts during a critical time in the UK's energy landscape.
This article was produced by AVALW News on Friday, May 15, 2026 based on reporting from 6 verified news sources. Our editorial process cross-references facts from multiple independent outlets to deliver accurate, comprehensive coverage. All original sources are linked below.