British Gas has agreed to pay £20m in penalties and compensation following a scandal in which debt agents broke into the homes of vulnerable customers to forcibly install prepayment meters. The payment, announced by the energy regulator Ofgem, is one of the largest ever levied against a supplier. But campaigners say the fine is a fraction of the company’s profits and that the entire system of forced installation needs to be overhauled.
The investigation found that British Gas used debt collectors who gained entry to properties by deception, sometimes forcing meters into the homes of people with mental health conditions, disabilities, or young children. In some cases, customers were left without heating or electricity for hours while meters were fitted. Ofgem said the company had failed to adequately monitor its contractors and had prioritised debt recovery over customer welfare.
The £20m comprises a £10m payment to a compensation fund for affected customers, a £5m fine, and £5m in goodwill payments. But unions and poverty charities argue this is insufficient. The GMB union, which represents some British Gas workers, said the scandal was a symptom of a profit-driven culture. “This £20m is loose change for a company that made over £1bn in profits last year,” said a spokesman. “The real reform needed is to ban forced installations altogether for vulnerable people.”
Ofgem has ordered British Gas to stop all forced installations of prepayment meters for the next six months while it carries out a review. But the regulator stopped short of a permanent ban, saying it would consult on new rules to ensure suppliers treat vulnerable customers fairly. These include requirements to check if a customer has a medical condition, to offer alternative payment arrangements, and to gain explicit consent before entering a home.
For many households, prepayment meters are a last resort. They are often installed when customers fall behind on bills, but they can be more expensive than paying by direct debit. The cost of energy is charged at a higher rate, and if the meter runs out of credit, the household is disconnected. This can lead to disconnections in winter months, putting lives at risk.
Sarah Jenkins, a debt advisor in Manchester, said the scandal highlighted the desperation of families unable to afford soaring energy costs. “I’ve seen people crying because they can’t top up their meter. They’re choosing between heating and eating. Then bailiffs come and force in a meter that makes things worse.” She welcomed the fine but urged the government to step in. “This isn’t just about one company. The energy market is broken. We need price caps, not just fines.”
The scandal has also raised questions about the role of bailiffs and debt agents. Ofgem said it would work with the Ministry of Justice to tighten regulations on the use of court warrants for forced entry. Currently, bailiffs can apply for a warrant to enter a home without the occupier’s consent, but critics say the process is too easy.
A spokesperson for British Gas owner Centrica said the company accepted the findings and had apologised to those affected. “We are putting in place new measures to prevent this from happening again, including a dedicated team to support vulnerable customers and additional training for all staff involved in debt collection.” But for many, the trust has been broken. As one affected pensioner told the BBC: “They came in like thieves. I’ll never trust that company again.”
The £20m payment is a salve, not a cure. The deeper issue is that energy companies still have too much power over the poorest households. Ofgem’s review must lead to real change: an end to forced installations for the vulnerable, a crackdown on exploitative debt collection, and a shift towards a system that puts people before profits. Anything less would be a failure of duty.
