Debt collectors from British Gas break into homes to force-fit prepayment meters

British Gas routinely sends debt collectors into the homes of vulnerable people to fit pay-as-you-go meters, an investigation has revealed.

An undercover reporter for The Times joined Avaro Financial Solutions, a debt-collecting company used by the energy firm, where he accompanied agents in below-freezing conditions as they broke into homes with the help of a locksmith.

Among the British Gas customers this practice happened to was a single father of three young children and a mother with a four-week-old baby, amidst the rising costs of energy bills and a cost-of-living crisis.

According to job notes The Times reporter had seen were other vulnerable customers, including a woman in her fifties described as having ‘severe mental health bipolar’, a woman who ‘suffers with mobility problems and is partially sighted’ and a mother whose ‘daughter is disabled and had a hoist, and electric wheelchair’.

After British Gas’ owners Centrica were approached for comment on their practices, the firm announced it had suspended all ‘warrant activity’.

Centrica chief executive officer Chris O’Shea said: “Protecting vulnerable customers is an absolute priority and we have clear processes and policies to ensure we manage customer debt carefully and safely.

“The allegations around our third-party contractor Arvato are unacceptable and we immediately suspended their warrant activity. Having recently reviewed our internal processes to support our prepayment customers as well as creating a new £10 million fund to support those prepayment customers who need help the most, I am extremely disappointed that this has occurred.

“As a result, on Wednesday morning, we took a further decision to suspend all our prepayment warrant activity at least until the end of the winter. More broadly, there are clearly significant challenges around affordability and unfortunately, we don’t see that changing anytime soon.

“We need to strike a balance between managing spiralling bad debt and being aware that there are those who refuse to pay and those who cannot pay. We think Government, industry and the regulator need to come together to agree a long-term plan to address this and ultimately create an energy market that is sustainable.”

Grant Shapps, the business and energy secretary, ordered an urgent meeting with British Gas, adding: “I am horrified by the findings of this investigation and would like to thank The Times for shining a light on these abhorrent practices.”

Energy regulator Ofgem has announced it will launch an investigation. A spokesperson 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.”

Energy companies can apply to magistrates’ courts for warrants to force entry into customers’ homes and fit a prepayment meter if they have fallen behind on bills.

This means that customers can only use their supply to heat their homes and cook if they top-up their meter card at a shop or do so via a top-up app. British Gas then takes £6.50 per week from top-ups as repayments — and hundreds of pounds extra is added to the customer’s bill to cover the debt collectors’ costs.

Arvato Financial Solutions told The Times it acted ‘compliantly at all times in accordance with the regulatory requirements’.