Putting right the wrongs of the forced fitting scandal

This newspaper published details of an undercover investigation this year into the forced fitting of prepayment meters by contractors working for British Gas. It found evidence of actions and behaviour that are simply unacceptable and showed a lack of respect for our customers. I immediately apologised and ordered a thorough investigation, overseen by Promontory Financial Group, an independent regulatory compliance consultancy.

This has now been completed and it has concluded that there were no systemic issues in the way we handled the fitting of prepayment meters under warrant. But it did find evidence that, in a small number of cases, we got things wrong or we could have acted differently. Today we are announcing a series of steps to make those improvements; indeed, we’ve already started making the changes.

We will no longer use third-party contractors to carry out the installation of prepayment meters under warrant. We will bring this role in-house and ensure that this activity is only ever carried out by British Gas workers, who will have extensive training and clear rules on how they carry out their job.

Our report has also recommended a number of oversight changes in the way we provide aftercare following prepayment meter installations. These changes are consistent with Ofgem’s new voluntary code of practice on forced fitting, which sets out a range of measures to offer more protection for vulnerable customers. We contributed to the development of the code, and support it.

We know the cost of energy remains a challenge for millions, so we also cut prices for prepayment customers last month, rather than waiting until July, making it the cheapest way to buy energy. Our decision will save prepayment customers about £60 a year on the average dual-fuel bill when compared with other suppliers. In addition, we established a £10 million fund to directly support prepayment meter customers who are in debt. This fund has already helped more than 50,000.

The details of hundreds of difficult cases we have reviewed as part of this process reinforces to me the need for a broader debate on the underlying issue of affordability. This is critical, as the struggle to pay bills is not going away any time soon.

The government has confirmed that it is looking carefully at long-term energy support, including a social tariff, from April 2024. This will be welcome news for those on the lowest incomes, but there will be some tough policy choices about how this is paid for.

The introduction of a social tariff should be a game-changer for consumers struggling with energy costs, food bills, higher rent and soaring mortgages. If we can get this right, I hope the issues around fitting prepayment meters under warrant will be a thing of the past.

But, for now, a social tariff is still some way off and it’s vital that our processes work to continue to protect vulnerable customers.

Fitting a meter after courts have granted a warrant is only ever a last resort when there have been many months of attempts to engage customers who are not paying their bills — but it is vital we handle the process properly. When The Times published its investigation, I said I was truly sorry that our actions had fallen short of the high standards we set ourselves. We believe that the changes we are making will help to put things right. But I want to say sorry once more to any customer we let down. We can, and will, do better.

Chris O’Shea is chief executive of Centrica