JAKARTA - Thousands of British Gas customers will receive compensation and debt write-offs for energy bills worth up to £112 million after a scandal over the forced installation of prepayment meters in vulnerable customers' homes. If it is converted into rupiah, the amount is around Rp2.63 trillion assuming a £1 exchange rate of around Rp23,500.
Launching a report by The Guardian, Friday, May 15, the British energy regulator, Ofgem, found that British Gas forcibly installed prepayment meters in customers' homes who were behind on their bills when the Russian gas crisis peaked.
The case is said to be one of the most complex investigations in Ofgem's history.
British Gas has been ordered to pay a fine of 20 million pounds to Ofgem's voluntary restoration fund. The company must also write off customer debts of up to 70 million pounds.
In addition, British Gas continues to run a £22.4 million support package for customers using prepayment meters (PPM).
Prepaid meters make customers have to buy energy credit first before they can use electricity or gas. This system is often criticized because it can burden low-income households when energy prices soar.
"We found British Gas failed to treat a number of vulnerable customers fairly when installing PPM without consent," Ofgem chief executive Tim Jarvis said.
The scandal came to light after The Times in early 2023 reported that British Gas' debt collection agents continued to install prepayment meters despite signs of vulnerability in home residents.
Ofgem later found most of the UK's big energy suppliers were also engaged in similar practices when the 2022 energy cost crisis left many people unable to pay their bills.
The investigation into British Gas was completed about a year after regulators said ScottishPower, EDF, E.ON, Octopus Energy, Utility Warehouse, Good Energy, TruEnergy, and Ecotricity breached standards on the installation of prepayment meters.
In May last year, the companies agreed to pay more than £18.6m in compensation and debt write-offs to around 40,000 households.
Jarvis emphasized that the installation of prepayment meters should be the last resort. This step should only be taken after strict checks so that debt collection is legal, safe, and proportional.
"We continue to pressure energy companies to be more active in recognizing customers who are having trouble and providing support," Jarvis said.
The chief executive of Centrica, British Gas's parent company, Chris O'Shea, apologized for the case.
"What happened should never have happened, and I apologize to the prepaid meter customers affected," O'Shea said.
He said the company had changed procedures and added security in the past three years.
Ofgem still prohibits the forced installation of prepayment meters in homes inhabited by children or people over 75 years of age.
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