British Gas has agreed to a £20 million payout and to compensate customers who had a prepayment meter installed without their permission, regulator Ofgem has said following an investigation.
The energy supplier will compensate customers who were affected in 2018-21, on top of payments that have already been made to those affected in 2022-23.
British Gas will also write off up to £70 million of energy debt for vulnerable customers as part of the agreement.
Ofgem said the investigation into five-year long policies and procedures had been one of the most complex in its history.
Tim Jarvis, the watchdog’s chief executive, said: “It is clear that British Gas fell short in its treatment of an unacceptable number of vulnerable customers who had a prepayment meter installed without consent, and it’s right that they’ve taken action to put things right.
“Because of our action customers will receive a substantial package of redress, compensation and debt write off.”
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