British Gas makes big change to prepayment meter installations after scandal – are you affected?
BRITISH Gas has made a big change to prepayment meter installations.
The country's biggest energy supplier has pledged to cut ties with a debt collection agency after it was caught force-fitting the devices in vulnerable households.
Instead, it'll install any prepayment meters in house.
It comes after an internal investigation by British Gas held Arvato Financial Solutions accountable for incorrectly forcing several customers onto prepayment meters last year.
The scandal was uncovered after an investigation by claimed that Arvato was ignoring the vulnerabilities of some customers.
It was reported that British Gas sent Arvato operatives to "break into" people's homes and "force-fit" prepayment meters after being issued with warrants - despite signs children and disabled people were living there.
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Warrants give energy firms the legal right to enter homes and install the kit, but the energy regulator said that these should only be issued in exceptional circumstances.
Sun Money called for a ban on moving households onto prepayment meters back in August last year.
In response to the findings, Ofgem banned all firms from force-fitting prepayment meters pending an investigation.
The ban was lifted in March but firms were still barred from moving people onto prepayment meters unless they agreed to a new set of rules.
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British Gas has today released the results of its own internal investigation on the issue.
Of the six cases which The Times included in its reporting, in two the British Gas contractor had acted in a way which "fell below the standard of conduct expected... when engaging with customers or operating in their homes."
The reviewers also said that contractors at Arvato had not broken British Gas' rules, or the law when fitting meters in the homes of those two customers.
It had, however, made an error when installing prepayment meters in the homes of two other customers.
On top of these four cases, the review said there were a further three where customers were wrongly charged for the fitting of a warrant and three more where the contractor had erroneously applied for a warrant to fit a prepayment meter.
The review also flagged a further 40 cases with insufficient records, notes or where the installation had happened in an empty home.
It recommended compensation for wronged customers but won't confirm when or how this will be paid.
Over 20,000 British Gas customers had a prepayment meter force-fitted last year.
These customers owed the company an average of £1,255 and had been in debt for an average of 449 days before a prepayment meter was fitted.
Following the internal review, British Gas has confirmed that any member of staff fitting prepayment meters will be required to wear a body camera.
Chris O'Shea, the boss of British Gas owner Centrica, said: "I was deeply concerned when I saw the way some of our prepayment customers were treated earlier this year.
"It’s not how I want us to do business and I’d like to take this opportunity once again to say how sorry I am and to apologise to anyone involved in cases where our actions fell short of the high standards we set ourselves.
"I’m reassured that the investigation found no systemic issues with the treatment of prepayment customers, but it did highlight areas where we can, and should, do better.
"We’re already implementing those changes and I hope the action we are taking to improve our approach shows our commitment to doing everything we can to support our vulnerable customers."
What energy bill help is available?
Energy suppliers also offer plenty of energy grants and schemes to help you out if you're struggling.
Here's a list of schemes open right now:
- British Gas Energy Trust Individuals and Family Fund
- British Gas Energy Trust
- EDF Customer Support Fund
- E.ON and E.ON Next Grants
- Octopus Energy Assist Fund
- OVO Energy
- Scottish Power Hardship Fund
There's a one-off fuel voucher from your energy supplier if you're on a prepayment meter.
Councils are also dishing out hundreds of pounds to hard-up families through the Household Support Fund.
Millions are also in line to receive cost of living payments worth up to £1,350.
The first instalment of the £900 payment started going out to millions on certain benefits, including Universal Credit and Pension Credit on April 25.
Meanwhile, a £150 payment and between £150-£300 payment will be made to millions with disabilities and pensioners.
You may be entitled to the £150 disability cost of living payment if you receive any of the following benefits:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
If you are eligible for the payment, it will be made this summer.
Meanwhile, pensioners who are entitled to a Winter Fuel Payment for winter 2023/24 will get an extra £150 or £300 paid on top of their normal payment from November this year.
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You will be eligible for a Winter Fuel Payment this winter if you were born before September 25, 1957.
Those eligible for the payment will receive a letter in October and November telling them how much money to expect.