Ofgem launches urgent investigation into British Gas after debt firm broke into homes to fit prepaid meters | UK News

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Ofgem, the energy regulator, is launching an urgent investigation into British Gas after allegations the company sent debt collectors who broke into customers’ homes to install prepaid meters.

It followed an investigation by The Times, which alleged that the company used by British Gas to pursue debts, Arvato Financial Solutions, had forced its way into homes to fit appliances, despite signs that children and disabled people lived there.

“These are extremely serious allegations from The Times. We are launching an urgent investigation into British Gas and will not hesitate to take aggressive enforcement action,” an Ofgem spokesman said.

“It is unacceptable for any supplier to impose coercive installations on vulnerable customers who are struggling to pay their bills before all other options have been exhausted and without thorough checks to ensure it is safe and practical to do so.

“An energy crisis is no excuse for unacceptable behavior toward any customer, especially those in fragile circumstances.”

Centrica, owner of British Gas, said in a statement that “all safeguards activities” had been suspended and that protecting vulnerable customers was an “absolute priority”.

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2:54 Prepaid meter controversy

The Times reported that British Gas customers whose prepaid meters were forcibly installed included a woman in her fifties described in work notes as “bipolar of severe mental health” and a mother whose “daughter is disabled and has a crane and an electric wheelchair”.

In the undercover investigation, the paper also alleged that Arvato Financial Solutions employees were incentivized with bonuses for matching prepaid counters.

Business Secretary Grant Shapps said he was “horrified” by the report and had asked Graham Stewart, the energy secretary, for a meeting with the company in the “coming days”.

Shadow Climate and net zero secretary Ed Miliband said: “It’s true you’re terrified. Now do something about it and prevent the mandatory installation of prepaid meters this winter. What are you waiting for?”

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The report comes amid a rising cost of living.

In its statement, Centrica said it would complete a “thorough investigation” and that the warranty suspension would continue “at least beyond the winter.”

Centrica CEO Chris O’Shea said: “Protecting customers at risk is an absolute priority and we have clear processes and policies in place to ensure that customer debt is managed carefully and safely. Allegations about third party contractor Arvato [Financial Solutions] unacceptable and we immediately suspended her activity.”

Arvato Financial Solutions told the Times that it “acts compliantly at all times in accordance with regulatory requirements” and that the findings do not represent the company’s opinions or formal guidance on how to interact with clients.

A spokesperson told the newspaper: “If there has been any misconduct, verbal or of any other kind, by individual employees, we deeply regret it.”

According to energy regulator Ofgem, obtaining an injunction to install a prepaid meter with force should be a “last resort” after “all reasonable steps have been taken to agree to payment”.

It said suppliers could not forcibly install a prepaid meter under a court order for people in “extremely vulnerable situations” if they did not want to and could not use warrants “on people who might find the experience too distressing”.

Last week, Ofgem announced it would review the checks and balances that energy companies have around placing customers on prepaid meters, warning it would take further legal action if it was found not to be taking due diligence.

According to Citizens Advice, an estimated 3.2 million people across Britain ran out of credit on a prepaid meter last year because they were unable to top up.

Sources

1/ https://Google.com/

2/ https://news.google.com/__i/rss/rd/articles/CBMie2h0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L2JyaXRpc2gtZ2FzLXN1c3BlbmRzLWZvcmNlLWZpdHRpbmctcHJlcGF5bWVudC1tZXRlcnMtYXMtdW5hY2NlcHRhYmxlLWFsbGVnYXRpb25zLWVtZXJnZS0xMjgwMTEyNtIBf2h0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L2FtcC9icml0aXNoLWdhcy1zdXNwZW5kcy1mb3JjZS1maXR0aW5nLXByZXBheW1lbnQtbWV0ZXJzLWFzLXVuYWNjZXB0YWJsZS1hbGxlZ2F0aW9ucy1lbWVyZ2UtMTI4MDExMjY?oc=5

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