British Gas has resumed installing prepayment meters in the homes of customers unable to afford their energy bills, months after agreeing to a record settlement of more than £100m over the treatment of vulnerable households.
The decision follows Ofgem’s lifting of a restriction that had prevented the supplier from recovering unpaid bills by fitting prepayment meters for almost four years. British Gas agents will be able to carry out forced installations from this winter, as households face some of the highest energy bills since 2023.
The restriction was imposed after an investigation found that debt agents working for British Gas had ignored signs of vulnerability while installing meters. The affected households included people with severe mental health conditions and physical disabilities. The episode triggered criticism from fuel poverty campaigners and government officials during the energy crisis.
Ofgem later lifted an industry-wide moratorium, allowing some suppliers to restart installations. Forced meter fittings remain prohibited in homes with young children or people aged over 75. The regulator said installations carried out under warrant should be used only as a last resort and must involve rigorous checks to ensure debts are recovered lawfully, proportionately and safely.
Campaigners have warned that the timing could increase anxiety among households worried about falling behind on their bills. Simon Francis, coordinator of the End Fuel Poverty Coalition, said regulators and ministers risked forgetting the lessons of the previous energy price spike. He also raised concerns about magistrates approving bulk applications and ongoing failures in the process.
British Gas said household energy debt was forecast to exceed £7bn, adding more than £80 to the average household energy bill. The company said suppliers needed to support customers who genuinely could not pay while taking appropriate action when customers could afford to pay but did not engage.
The supplier said it would seek to contact struggling customers early, provide targeted support and agree flexible repayment plans wherever possible. It added that involuntary prepayment meter installations would remain a last resort and would require vulnerability and affordability checks.
Ofgem rules require suppliers to make at least 10 attempts to contact a customer before installing a prepayment meter and to carry out a welfare visit. Meters must not be installed in homes considered to be at the highest risk, including those with people over 75, children under two, severe health conditions or medical equipment.
The government said the decision was a matter for Ofgem but warned that past abuses involving vulnerable customers must not be repeated. Ofgem said it would continue monitoring suppliers and take action if it found that its rules were not being followed.
Sources: The Guardian Business.