British Gas ordered to make major change after prepayment meter investigation – could you get compensation?
BRITISH Gas is being urged to make a major change after it forced entry into customers' homes to fit prepayment meters.
The energy giant has been banned from force fitting pre-payment meters by Ofgem.
The regulator has issued a legal order stopping British Gas from forcibly entering customers' homes until it can prove that it was complying with all its legal obligations.
This follows a Times investigation which revealed how customers – including disabled and mentally ill people – have been forced by British Gas on to the pay-as-you-go meters, or face having their gas switched off.
Sun Money called for a ban on moving households onto prepayment meters this winter back in August last year, as over 4million households already face paying more for energy just because they have one installed.
Energy minister Graham Stuart has asked Centrica, which owns the energy giant, to urgently outline compensation for “mistreated customers”.
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While Ofgem called for “action, not warm words and ordered all domestic energy companies to suspend the system of forcibly installing prepayment meters.
It is not yet clear if compensation will be offered at all, or what form it will take if it is given.
The Sun has contacted British Gas for comment.
An undercover reporter for the The Times worked for debt collecting contractor Arvato Financial Solutions and accompanied agents who used court warrants to gain entry into customers’ homes to force-fit the meters.
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Energy and Climate minister Mr Stuart said he was “horrified” to read about the “mistreatment” of these customers, and said he would “make sure justice prevails” following a meeting with Centrica’s chief executive Chris O’Shea.
British Gas, along with several more energy companies including EDF, have suspended the practice, while the Times has said Scottish Power and E.ON have also followed suit.
Ovo Energy and Utilita halted forcing customers onto costly prepayment meters over the busy Christmas period.
OVO and Octopus Energy said they have not used the practice recently.
Centrica’s Mr O’Shea said: “Protecting vulnerable customers is an absolute priority and we have clear processes and policies to ensure we manage customer debt carefully and safely.
“The allegations around our third-party contractor Arvato are unacceptable and we immediately suspended their warrant activity.”
Warrants give energy firms the legal right to enter homes and install the kit, but these should only be used in exceptional circumstances.
Customers must then top up payments to receive gas, or risk their heating being cut off.
What can you do if you're struggling to pay for your energy?
There are some measures you can take if you're struggling to pay for your energy.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves you paying off what you owe in instalments over a set period of time.
If your supplier offers you a repayment plan you don't think you can afford, speak to them again to see if you can negotiate a better deal.
Beyond this, a number of suppliers offer customers grants if they're struggling to pay energy bills.
A grant is a sum of money you don't have to pay back, so it's essentially free cash.
British Gas, Scottish Power, Ovo Energy, E.On, E.On Next, EDF, Octopus Energy and Shell Energy all offer the grants.
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Plus, you might be able to get help from charities that can help you pay off your debt.
StepChange is one such charity, and you can call them for free advice on 0800 138 1111.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]