A pre-pay meter
British Gas bosses will be confronted by ministers on Thursday after a “deeply disturbing” investigation revealed prepayment meters were being forcibly installed in the homes of “vulnerable” customers.
Number 10 said allegations that contractors for the company were “breaking into” the properties of people who could not afford their bills were "shocking".
The Prime Minister's official spokesman said Energy Minister Graham Stuart would meet with British Gas on Thursday afternoon to discuss the reports.
He added: "The reports we've seen today are deeply shocking and concerning.
"Vulnerable families should not be treated so poorly. The findings suggest that British Gas has failed to use every possible avenue to support those struggling with energy bills as they rightly deserve and are entitled to. Rightly British Gas has now suspended this practice."
When customers fail to keep up with payments, energy companies can obtain court warrants which give them legal rights to enter houses and fit pay-as-you-go meters.
Families must then top up to continue receiving gas supplies, and if they fail to do so they risk their heating being cut off.
The method is more costly for the customer than paying by direct debit, but means households cannot fall behind on bills.
An investigation by The Times reported that British Gas contractor Arvato Financial Solutions sent staff and locksmiths to “break into” people’s homes and “force-fit” meters – even when customers were known to have “extreme vulnerabilities”.
Chris O’Shea, chief executive of British Gas owner Centrica, said he was “horrified” at the “deeply disturbing” report.
He told BBC Radio 4: “It’s completely unacceptable. The contractor we employed has let us down. But I’m accountable for this. This happened when people were acting on behalf of British Gas... There is nothing that can be said to excuse it. Everyone of our customers deserves to be treated with respect.”
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.
Mr O’Shea added that British Gas had suspended applying for court warrants to enter customers’ homes to fit the prepayment meters until the end of winter.
An independent report into the practice has been commissioned by British Gas. Energy regulator Ofgem also announced it will launch an investigation.
Mr O’Shea said: “Where we’ve got it wrong, we’ll make it right.”
Bills have soared in the last year and are set to rocket again in April, when the Energy Price Guarantee will rise from £2,500 a year for the average household to £3,000.
Hundreds of thousands of UK households are believed to have already been switched over to the more costly prepayment meters after failing to keep up with rising payments.
Some have found their smart meters switched to prepayment mode remotely while others have been confronted at their door by teams sent by companies - armed with magistrates’ court warrants - to physically make the change.
I am horrified by the findings of this investigation by @thetimes.
— Rt Hon Grant Shapps MP (@grantshapps) February 1, 2023
I have asked Energy Minister @GrahamStuart to hold a meeting with the company in the coming days, and he will be demanding answers to ensure this systemic failure is addressed.
https://t.co/NIx1ZWWtFF
Energy Secretary Grant Shapps said he was “horrified” by the findings, and said on Twitter he had asked Energy Minister Graham Stuart to meet with the firm in coming days, adding: “He will be demanding answers to ensure this systemic failure is addressed.”
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.”
Arvato Financial Solutions has been contacted for comment.
