Ofgem tells energy firms to stop force-fitting prepayment meters after British Gas agents broke into home to fit them
2 February 2023, 21:24 | Updated: 2 February 2023, 21:43
Energy regulator Ofgem has ordered suppliers to stop force-fitting prepayment meters after an investigation found British Gas debt agents broke into vulnerable people's homes to install them.
Following the investigation, British Gas announced it had stopped force-fitting prepayment meters and apologised for the way some customers had been treated.
The controversial practice sees energy companies apply to the courts for permission for debt agents to force their way into customers' homes and fit a meter if they fall behind on bills.
Jonathan Brearley, Ofgem’s chief executive, told The Times that a warning had been issued to all energy supplies to suspend the breaking into homes and force-fitting of equipment.
An Ofgem spokesperson said: “These are extremely serious allegations from The Times. We are launching an urgent investigation into British Gas and we won’t hesitate to take firm enforcement action.
“It is unacceptable for any supplier to impose forced installations on vulnerable customers struggling to pay their bills before all other options have been exhausted and without carrying out thorough checks to ensure it is safe and practicable to do so.
“We have launched a major market-wide review investigating the rapid growth in prepayment meter installations and potential breaches of licences driving it."
Regulator Ofgem previously said it should only be a last resort and never used against people in "very vulnerable situations", while business and energy secretary Grant Shapps said it should stop.
But an investigation by The Times has found British Gas continued to do so, after a reporter joined Arvato Financial Solutions – a company used by the energy giant to chase debts.
In one case, debt agents broke into a single father-of-three's home to install a prepayment meter during freezing conditions, and in another instance they force-fit one at the home of a young mother who had a four-week-old baby and was facing soaring energy bills.
Job notes showed British Gas customers had forced prepayment meter fittings at the home of a woman in her 50s who was thought to have "severe mental health bipolar", a woman who had "mobility problems and is short sighted" and a mother whose daughter "is disabled and has a hoist and [an] electric wheelchair".
British Gas said the forced fittings had been suspended and was investigating the "deeply concerning" revelations.
"This is not who we are — it's not how we do business," the business said.
Mr Shapps said he was "horrified" and said ministers would be "demanding answers to ensure this system failure is addressed".
When a prepayment meter is installed, customers have to pay by topping up their balance, which they can do on an app on their smartphone or by visiting a shop.
After fitting, British Gas typically charges £6.50 from their balance to pay back debts, while hundreds is added to cover charges for the debt collectors.
This comes as Centrica, the owner of British Gas, announced it expects net profits to increase sevenfold after energy prices soared, which has drawn criticism as Brits struggle to pay their bills.
A spokeswoman for Centrica said "protecting vulnerable customers is a priority" and it was "taking these allegations seriously".
It was also found that Arvato workers are encouraged to force-fit meters through bonuses, which can incentivise them to ignore vulnerabilities – defined by Ofgem as people at retirement age, disabled people, those with mental health conditions, pregnant mothers, or those with a child under five.
"If every single mum that starts getting a bit teary you're going to walk away from, you won't be earning any bonus," one agent said.
A manager who oversaw debt collectors for the energy giant said customers were threatened with police coming around to kick in their doors and search their homes if they did not comply.
An agent who collects debts for British Gas said: "If they go in and they see an elderly lady, they'll be like, 'oh an easy job for me'."
Arvato said it "acts compliantly at all times in accordance with the regulatory requirements" and the findings did not represents its views or guidance on how staff should treat customers, adding it would "deeply regret" any misconduct.
Government figures show how there were 345,000 applications by energy companies to courts to install preypayment meters, up from 275,000 in 2019.
Ofgem has launched an investigation into British Gas’s debt collection.
