Regulatory reset
British Gas has restarted the practice of installing prepayment meters in the homes of customers judged unable to pay their energy bills, months after agreeing a £112m settlement over its conduct. The company had been barred from using forced installations to recover unpaid charges by an industry regulator for almost four years.
Background to the settlement
The settlement — reported as the largest on record — related to a scandal in which debt collectors were sent into the homes of vulnerable customers. That controversy unfolded at the height of the Russian gas crisis, when energy market strains prompted increased scrutiny of supplier practices.
What the regulator lifted
The regulator's decision removes the specific constraint that had prevented the supplier from clawing back debt via prepayment meters. Details of any conditions attached to the lifting of the block were not provided in the summary, but the change ends a multiyear prohibition on forced installations by the company.
Implications for customers and the market
Prepayment meters require customers to pay for energy in advance and can result in loss of supply if credit runs out. The resumption of forced installations therefore has immediate practical implications for households unable to meet bills and for how the company manages outstanding debts.
Outlook
The return to using prepayment meters follows a costly regulatory intervention and is likely to keep the company under close observation. The lifting of the block marks a significant shift in enforcement and debt-recovery options available to the supplier after the earlier sanctions.