Could you be owed compensation from British Gas? Here’s what you need to know

Thousands of British Gas customers could be in line for compensation after the energy supplier agreed to a £20m settlement over the forced installation of prepayment meters.

If you had a prepayment meter installed without your permission, you may be affected, particularly if you were considered vulnerable at the time.

What’s happened?

The energy regulator, Ofgem, investigated British Gas after concerns were raised about how some prepayment meters were installed between 2018 and 2021.

An investigation by the Times found that debt collectors had been used to force-fit the meters, including households where people were living with disabilities or mental health conditions.

As a result:

• suppliers were banned from carrying out forced prepayment meter installations in 2023
• British Gas have agreed to a £20 million compensation package
• up to £70m of energy debt will also be written off for vulnerable customers
• British Gas has been ordered to create a new vulnerable customers debt advisory panel to improve how it supports vulnerable households

Could you be due compensation?

You could be entitled to compensation if:

• you had a prepayment meter installed without your agreement
• you were considered a vulnerable customer
• the installation happened between 2018 and 2021

Some customers affected between 2022 and 2023 have already received compensation offers from British Gas.

Do you need to do anything?

No, if you’re eligible for compensation, British Gas says it will contact you directly.

Any compensation owed will either be:

• paid directly to you, or
• credited to your energy account

So for now, you don’t need to apply or take any action.

What you can do if you’re struggling with energy bills

Speak to your supplier

If you think your direct debit is too high, ask your supplier to tell you how they’ve calculated the amount they want you to pay.

And if trying to repay your energy bill arrears is making your financial situation worse, speak to them to see if you can agree a payment arrangement.

Make part payments

If you can’t afford to pay the amount you’re being asked for each month in full, you should still try to pay something if you can.

This shows your supplier that you’re trying your best, so they’d be less likely to try to move you on to prepayment.

Pay less towards your other debts

Energy bills are priority debts, so you should pay these ahead of non-priority debts such as unsecured loans and credit cards.

Know your rights

If an energy company is trying to move you onto a prepayment meter, you can refuse if you believe it could cause you harm or they haven’t offered you alternatives.

So make sure you understand your rights before you speak to your supplier.

And if they still want to move you to prepayment, you should complain.

Can you get help if you're struggling to top up?

If you can’t afford to top up your prepayment meter, you may be able to get help, such as:

• fuel vouchers
• energy grants
• grants from charitable trusts
• money from the household support fund

It might also be worth signing up to the Priority Services Register for free, as this entitles you to extra help from your energy supplier.

Find out more about what support is available here.