British Gas has restarted the installation of prepay meters in homes of customers with unpaid energy bills, following regulatory approval to lift restrictions that had been in place for nearly four years. The move comes several months after the company reached a settlement exceeding £100m with industry regulators over its involvement in what became known as the prepay scandal during the Russian gas crisis.
The scandal centered on aggressive debt collection practices in which British Gas agents installed meters in vulnerable households without properly identifying signs of hardship, including those with severe mental health conditions or physical disabilities. The revelations sparked significant criticism from fuel poverty advocates and government officials, particularly given concurrent efforts by policymakers to support households facing elevated energy costs.
Ofgem, the energy regulator, imposed an industry-wide moratorium on forced meter installations following the controversy. The agency has now allowed force-fitting to resume, though certain protections remain in place. Installations continue to be prohibited in homes where residents are over 75 years old, under 2 years old, or have severe health conditions requiring medical equipment. Suppliers must attempt at least 10 contact attempts with customers before proceeding with installation and conduct welfare visits beforehand.
Campaign groups and advocacy organizations have expressed concern about the timing of the resumption, noting that households are approaching winter while facing energy bills among the highest since 2023. Industry forecasts suggest household energy debt could exceed £7bn. Advocates worry that existing safeguards may not prevent a repeat of previous failures, citing evidence that magistrates continue approving bulk applications for meter installations and that some identified system failures persist.
British Gas stated that involuntary meter installation will remain a final option and that the company will prioritize early engagement with struggling customers, offering support and flexible payment arrangements. Government and regulatory officials stated they would monitor compliance closely to prevent abusive practices from recurring.
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