British Gas to Force-Fit Prepayment Meters Again After £112m Scandal

British Gas will resume force-fitting prepayment meters this winter, months after paying a record settlement worth more than £100m — reported at £112m — for sending debt collectors into the homes of vulnerable customers. Ofgem has lifted an almost four-year block that stopped the supplier clawing back unpaid bills by installing prepay meters in customers' homes.

The timing is stark. Households are bracing for some of the highest energy bills since 2023, the year the supplier first came under fire over its treatment of struggling customers. Now its agents can return to forced installations, subject to strict conditions.

The original scandal, exposed by an investigation by the Times, found that debt agents working for British Gas ignored signs of vulnerability in struggling households — including people with severe mental health issues and physical disabilities — while fitting meters. The outrage reached Whitehall at a moment when the government was spending billions to cut bills and prevent a collapse of the supplier industry.

What rules still apply?

Within a year of the scandal, the regulator lifted its industry-wide moratorium to let a string of suppliers restart installations. Forced fittings in homes with young children or people over 75 remain banned outright.

Ofgem said installing a prepayment meter under a warrant "should only be a last resort, with rigorous checks to ensure debt is recovered lawfully, proportionately and safely". It added that smart pay-as-you-go meters "are a positive choice for many customers, helping them stay in control of their energy use and reporting high levels of satisfaction".

The rulebook suppliers must follow includes:

• At least 10 contact attempts before a prepayment meter is installed
• A welfare visit before installation
• No fittings in the highest-risk households: anyone over 75, children under 2, or residents with severe health issues or medical equipment

What does this change for households?

In practice, the ban's end means customers who stop paying and disengage face a real prospect of a warrant-backed meter this winter. For households that engage, the immediate picture is less severe — British Gas says it plans to "engage early, offer targeted support and agree flexible, affordable repayment options" wherever possible.

Campaigners warn the timing will compound fear around falling behind on bills. Simon Francis, coordinator of the End Fuel Poverty Coalition, said: "It's almost as if regulators and ministers are failing to remember the lessons of the last energy price spike."

He added: "While more protections are now in place than in 2022, we know that magistrates are still approving bulk batches of applications for forced prepayment meter installs and some of the system failures identified in the original investigations are still happening."

Why British Gas says it has to act

The supplier's defence rests on a number: household energy debt is forecast to exceed £7bn, adding roughly £80 to the average household bill — a cost socialised across all customers when arrears go unpaid.

"Our industry needs to protect and support customers who genuinely cannot afford to pay while taking appropriate action where people are able to pay but do not engage," British Gas said. "We know many households are struggling with energy costs, and we offer significant support to those who need it most."

The company said involuntary fittings would "remain a last resort, with robust vulnerability and affordability checks".

A government spokesperson said: "This is a regulatory decision by Ofgem. We cannot allow past rogue practices to be repeated, where prepayment meters were wrongly installed in the homes of vulnerable people. We are closely watching to make sure companies protect their customers and act within Ofgem's rules."

An Ofgem spokesperson said the regulator will continue to closely monitor suppliers and will "take action if we identify instances where our rules are not being followed".

The test now shifts to enforcement. Whether the post-2022 safeguards hold in practice — or magistrates keep approving bulk warrants as Francis claims — will determine if this winter's fittings stay distinguishable from the scandal that cost British Gas more than £100m the first time.