British Gas has regained permission to forcibly install prepayment meters in customers’ homes, months after agreeing to a record £112 million settlement over its treatment of vulnerable households. The decision comes as Britain faces another winter of high energy costs and mounting household debt.
Ofgem Lifts Restrictions After Nearly Four Years
The energy regulator Ofgem has lifted restrictions imposed following a scandal involving debt collectors who entered homes to install prepayment meters.
According to The Guardian, the decision allows British Gas to resume installations under warrant this winter, reversing a block that had remained in place for almost four years.
The controversy erupted in 2023 after an investigation by The Times exposed agents ignoring signs of vulnerability, including severe mental health conditions and physical disabilities, while fitting meters in customers’ homes.
Ofgem said installing a prepay meter under a warrant “should only be a last resort, with rigorous checks to ensure debt is recovered lawfully, proportionately and safely”.
The regulator also defended voluntary prepaid energy arrangements, saying smart pay-as-you-go meters were “a positive choice for many customers, helping them stay in control of their energy use and reporting high levels of satisfaction”.
Campaigners Warn That Past Failures Could Return
The decision has alarmed fuel poverty campaigners, who question whether existing safeguards can prevent further harm.
Simon Francis, a 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.
“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.”
The warning comes as household energy debt is forecast to exceed £7 billion, potentially adding more than £80 to the average household energy bill.
Households are facing another winter of high energy bills, and just months after British Gas agreed a £112m settlement over its treatment of customers, Ofgem is allowing the company to force-fit prepayment meters in people’s homes again. If you’re already struggling to pay your energy bill, being put on prepayment won’t make it any easier to afford. It means that if you run out of credit and can’t afford to top up, you could be left without heating or power. Households have stronger protections than they did in 2022, but magistrates are still approving warrant applications in batches. 22% of adults are worried about going into energy debt and could be affected. This is the wrong time for the regulator Ofgem to loosen limited protections. Read more: https://t.co/wiT8dHWZZ8
— End Fuel Poverty Coalition (@EndFuelPoverty) November 3, 2026
British Gas Defends Its Approach to Unpaid Bills
British Gas maintains that suppliers must distinguish between customers experiencing genuine financial hardship and those who can afford their bills but refuse to engage.
“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,” the company said. “We know many households are struggling with energy costs, and we offer significant support to those who need it most.”
The supplier said it planned to “engage early, offer targeted support and agree flexible, affordable repayment options” to struggling customers wherever possible, and that involuntary prepay meter fittings would “remain a last resort, with robust vulnerability and affordability checks”.
Strict Safeguards Remain in Place for Vulnerable Households
Under Ofgem’s regulations, energy suppliers must attempt to contact customers at least 10 times and conduct a welfare visit before installing a prepayment meter under warrant.
Forced installations are prohibited in households containing children under two, people over 75, or individuals with severe medical conditions or essential medical equipment.
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.”
Ofgem has pledged continued monitoring of suppliers and says it will take action whenever companies fail to comply with its rules.
