REG - Centrica PLC - British Gas agrees PPM settlement

CentricaAnnouncement

15/05/2026 07:02

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RNS Number : 4259E  Centrica PLC  14 May 2026

Centrica plc ("the Company")

15 May 2026

 

Ofgem closes investigation of British Gas's installation of prepayment meters
under warrant

The Company announces that its wholly owned subsidiary, British Gas Trading
Limited ("British Gas"), has agreed to pay £20m into Ofgem's Voluntary
Redress Fund following Ofgem's investigation into legacy prepayment meter
practices. The investigation followed issues identified in 2023, covered
activity between February 2018 to February 2023, and was resolved with the
regulator through alternative action.

When issues came to light three years ago, it was clear that some customers
who had an involuntary prepayment meter installed were not treated with the
care and respect that they deserved. There were also errors in identifying
some customers in vulnerable situations who should have been excluded. British
Gas apologised, immediately stopped involuntary installations, and ended the
use of third‑party contractors for field debt recovery activity. The company
has since strengthened governance, oversight and safeguards for vulnerable
customers, which Ofgem has recognised in its decision. British Gas has not
restarted warrant‑based prepayment meter installations.

In addition, British Gas will now undertake a comprehensive review of its
customer records from the relevant period and provide redress and compensation
wherever possible for customers who were affected. This will include
compensation to affected customers during the period 2018-21 (in addition to
the compensation already paid for the period 2022-23), alongside the
write‑off of up to £70m in energy debt for vulnerable customers (a
proportion of which may be used as compensation for some customers). Customers
do not need to take any action and, where applicable, will be contacted
directly by British Gas.

Chris O'Shea, Group Chief Executive of Centrica, said:

"What happened should never have happened, and I am sorry to the prepayment
customers who were affected. When we get things wrong, we make them right.
When these issues came to light in 2023 - we apologised, stopped the activity
immediately and took rapid action to improve our processes and change how we
engage with customers in debt, particularly those in vulnerable situations.

Over the last three years, we have treated this matter with the seriousness it
deserves and have made changes to our practices and put safeguards in place to
ensure we deliver the standards our customers have every right to expect.
Providing help to those who need it most has always been a core part of what
we do at British Gas, and this issue has been deeply felt by the many
thousands of colleagues who work hard every day to do the right thing for our
customers.''

With customer energy debt across the sector projected to rise to around £7
billion later this year, British Gas will establish the British Gas Vulnerable
Energy Customers Debt Advisory Panel, including independent experts, for 24
months to support its ambition to develop industry-leading practices in the
treatment of vulnerable energy customers in debt and to develop insights to
help in the development of future policy in relation to vulnerable customers
in debt.

Since the 2022 energy crisis, British Gas has voluntarily delivered £140
million in targeted support to customers struggling to pay their energy bills.
This includes £22.4 million of direct help for prepayment customers,
alongside debt relief, hardship funding and independent advice through trusted
charity partners. Through the You Pay, We Pay scheme alone, more than 16,000
customers have received £12.7 million in matched payment support.

 

Notes

·  British Gas paused warrant-based involuntary prepayment meter
installations for residential customers in early 2023 and has not restarted.

·    Industry body, Energy UK, estimates total household energy debt could
escalate to more than £7 billion by the end of 2026. Energy UK raises alarm
over £5.5 billion energy debt crisis - Energy UK
(https://www.energy-uk.org.uk/news/energy-uk-raises-alarm-over-5-5-billion-energy-debt-crisis/)

·   The Company does not anticipate any impact to its 2026 financial
guidance, as set out in its Preliminary Results announcement dated 19 February
2026 and its trading statement dated 7 May 2026, as a result of the matters
referred to in this announcement.

 

 

Centrica plc is listed on the London Stock Exchange (CNA)

Registered Office: Millstream, Maidenhead Road, Windsor, Berkshire SL4 5GD

Registered in England & Wales number: 3033654

Legal Entity Identifier number: E26EDV109X6EEPBKVH76

ISIN number: GB00B033F229

 

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