British Gas accused is of ‘force-fitting’ meters
OFGEM has launched an investigation into British Gas following reports the firm has been sending debt collectors to “break into” customers’ homes to “force fit” prepayment meters – including in vulnerable households.
The energy giant will also be hauled in front of Energy Minister Graham Stuart to explain itself as the Department for Business, Energy and Industrial Strategy (BEIS) said: “Forcibly switching customers should only ever be a last resort.”
British Gas has announced it will stop applying for court warrants to enter customers’ homes and fit prepayment meters following reports they had been forced on “vulnerable” customers.
Energy companies can obtain court warrants which give them legal rights to enter people’s homes and fit prepayment meters if customers have not paid their bills. Customers must then top up to continue receiving gas supplies and, if they fail to do so, they risk their heating being cut off.
The Times reported that British Gas sends debt collectors to “break into” people’s homes and “force-fit” pay-as-you-go meters – even when customers are known to have “extreme vulnerabilities”.
An undercover reporter for the newspaper worked for debt collecting contractor Arvato Financial Solutions and accompanied agents who used court warrants to gain entry into customers’ homes to force-fit these meters.
Some of the “vulnerable” customers the Times reporter came across while working at Arvato Financial Solutions included a single father with three young children and a mother with a four-week-old baby.
An Ofgem spokesman said: “These are extremely serious allegations from The Times which we will investigate urgently with British Gas and we won’t hesitate to take firm enforcement action.
“It is unacceptable for any supplier to impose forced installations on vulnerable customers struggling to pay their bills before all other options have been exhausted and without carrying out thorough checks to ensure it is safe and practicable to do so.
“We recently announced a major market-wide review investigating the rapid growth in prepayment meter installations and potential breaches of licences driving it.
“We are clear that suppliers must work hard to look after their customers at this time, especially those who are vulnerable, and the energy crisis must not be an excuse for unacceptable behaviour towards any customer, particularly those in vulnerable circumstances.”
A BEIS spokesman said: “Forcibly switching customers should only ever be a last resort. The Energy Minister will be meeting with British Gas in the coming days and will be demanding answers to ensure this systemic failure is addressed.”
British Gas owner Centrica announced it was suspending “all warrant activity” after the newspaper’s article was published.
The parent company will also launch an investigation into the claims.
Centrica chief executive officer Chris 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 thirdparty contractor Arvato are unacceptable and we immediately suspended their warrant activity.
“Having recently reviewed our internal processes to support our prepayment customers as well as creating a new £10m fund to support those prepayment customers who need help the most, I am extremely disappointed that this has occurred.
“As a result, on Wednesday morning, we took a further decision to suspend all our prepayment warrant activity at least until the end of the winter.”
Arvato Financial Solutions has been contacted for comment, as has Energy UK, which represents suppliers.