British Gas customers to receive up to £112m over prepayment meter scandal

British Gas customers affected by the prepayment meter scandal are set to receive compensation totaling up to £112 million. This follows an investigation by Ofgem, the UK's energy regulator, which revealed that the company had improperly forced prepayment meters into the homes of vulnerable customers during the peak of the Russian gas crisis.

The compensation package includes a £20 million penalty for British Gas, as well as £70 million in debt write-offs for customers who were impacted by the forced installations. This decision marks one of the most extensive and complex investigations conducted by Ofgem to date.

The scandal has raised significant concerns about the treatment of vulnerable customers in the energy sector, prompting calls for stricter regulations to protect consumers from similar practices in the future.

This compensation initiative aims to address the financial burdens placed on those who were coerced into using prepayment meters, which can often lead to higher energy costs and further financial distress.

Source: www.theguardian.com – https://www.theguardian.com/business/2026/may/15/british-gas-prepayment-meters-compensation-customers