Business news and discussion on TalkFuse.
British Gas resume force-fitting prepayment meters months after £112m settlement
Ofgem has lifted a nearly four-year restriction on British Gas, allowing it to resume installing prepayment meters without customers’ consent to recover unpaid energy bills. The move comes months after the supplier agreed to a settlement worth more than £100m over its role in the prepayment meter scandal, and as households face high bills this winter.
Campaigners warn the change could add to the anxiety of people struggling with energy costs, while British Gas says involuntary installations will be a last resort and follow checks on vulnerability and affordability. Ofgem requires suppliers to make at least 10 attempts to contact customers and conduct a welfare visit; forced installations remain barred in homes with people over 75, children under two, or those with severe health conditions or medical equipment. Household energy debt is forecast to exceed £7bn, adding around £80 to the average bill.
In short
- British Gas can resume forced prepayment meter installations.
- The restriction was lifted months after a settlement worth over £100m.
- Energy debt is forecast to exceed £7bn.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Allowing carefully controlled installations gives suppliers a way to recover unpaid bills and manage debts that would otherwise be spread across customers, while potentially preventing debts from growing further. Ofgem’s contact and welfare checks, vulnerability safeguards and last-resort requirement are intended to protect households and ensure the measure is used only when other approaches fail.
The case against
Even with safeguards, installing a prepayment meter without consent can sharply restrict access to energy for people already in financial difficulty, and may deepen anxiety or hardship during a high-bill winter. Given the recent scandal and the scale of household energy debt, campaigners can argue that lifting the restriction risks repeating harmful practices and that suppliers should pursue other ways to agree repayment.
Explained simply
Prepayment meters require households to pay for energy before using it, often by topping up a key, card or online account. Suppliers can seek permission to install one when bills go unpaid; in some cases, they may fit a meter without consent to manage the debt.
Ofgem regulates energy suppliers in Britain and sets rules for how they treat customers. British Gas is one of the country’s largest suppliers, and its earlier role in fitting meters in customers’ homes without consent led to an industry scandal and a financial settlement.
The issue affects how suppliers recover unpaid bills and how they protect people who may be vulnerable. Energy debt is expected to grow, while campaigners and suppliers differ on how to balance debt collection with the risks for households struggling to pay.