Centrica to pay millions after investigation into British Gas prepayment meters

Friday 15 May 2026 - 08:30

British energy company Centrica has agreed to pay millions of pounds following an investigation into the installation of prepayment energy meters by its subsidiary British Gas.

The investigation, conducted by the UK energy regulator Ofgem, found that prepayment meters had been installed in the homes of vulnerable customers without proper consent. These systems require users to pay in advance for electricity or gas access, with the risk of supply interruption if credit runs out.

According to regulators, the company failed to adequately protect some customers facing financial or personal difficulties. As part of the agreement, Centrica will contribute to a compensation fund, cancel part of affected customers’ debt, and review past customer cases linked to the practice.

The company stated that it had already stopped the controversial procedure after the issue became public and had introduced measures to improve customer protection and internal oversight. Company executives also issued public apologies to affected households.

The case has intensified debate in the United Kingdom over rising energy costs and growing household debt. Industry groups warn that millions of consumers continue to struggle with utility payments amid economic pressures and inflation.

Consumer advocates argue that energy suppliers must strengthen protections for vulnerable individuals, especially during periods of financial hardship. The investigation also highlights broader concerns regarding accountability and regulation within the energy sector.