British Gas will need to compensate customers whose homes were broken into to fit prepayment meters, if a review finds rules were broken.
Ofgem has announced a “comprehensive, independent and wide-ranging review” into British Gas after its subcontractors forced meters on vulnerable people without waiting for the outcome of a major review.
A pause in forced prepayment fitting will continue until the end of March.
The probe will determine whether the energy firm took all steps under its licence to help domestic customers with debt before installing a prepayment meter or disconnecting them.
Jonathan Brearley is urging firms to compensate customers forced into prepayment meters
House of Commons
It will assess whether British Gas or anyone working for the supplier checked if a customer’s “mental capacity and/or psychological state is such that installation of a prepayment meter would be severely traumatic to a customer and make their condition significantly worse”.
The probe will also investigate whether those working on fitting meters for British Gas had the necessary skills – including the ability to assess the mental capacity and psychological state of the customer on the doorstep – to enter customers’ homes.
“Clearly something has gone wrong in British Gas and what we’re announcing today is a comprehensive, independent, wide ranging review into what has happened there,” the regulator’s chief executive Jonathan Brearley told BBC Radio 4’s Today programme.
A separate investigation set up in January will check whether rules have been followed.
He said: “To be clear, if we find those rules haven’t been followed those companies will be forced to make redress and that’s highly likely to mean they will have to put that meter right.
"They will have to pay compensation and if it’s systematic there will be fines for those companies.”
The Ofgem investigation was launched after The Times revealed that British Gas subcontractors had been breaking into the homes of customers, including disabled and mentally ill people, to install the meters.
Brearley said: “As a result of the unprecedented surge in energy prices, households across the country are facing significant energy bills and this has meant many are finding themselves in debt and being forced onto prepayment meters (PPMs).
Energy prices have surged in recent months
Danny Lawson
“The rules and regulations are clear that installing forced PPMs should only be done as a last resort and only where it is safe and practicable to do so.
“We expect suppliers to treat customers with compassion and professionalism and those executing a warrant should take into account what they find when they visit a home and pause the installation if they see a safety risk.
"Where this hasn’t happened, we will hold suppliers to account.”
He added: “We are taking this issue extremely seriously and customers should feel reassured that where the rules have been broken, Ofgem will act.”
