British Gas owner Centrica PLC (LSE:CNA) will be among energy companies investigated by the UK regulator after an undercover journalist found the company's debt collectors broke into vulnerable customers' homes to install prepayment meters.
Chris O'Shea, chief executive of the FTSE 100-listed group, admitted “this happened when people were acting on behalf of British Gas" and that there is "there is no excuse", in interviews with media on Thursday.
British Gas customers who had meters fitted by force included a woman with “severe mental health” issues and a mother with a disabled daughter, a Times investigation found.
Ofgem said it would not “hesitate to take firm enforcement action” against the energy company.
The newspaper report said Arvato Financial Solutions was the debt collection company used by British Gas that had broken into homes to fit meters.
An Ofgem spokesperson said: “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 have launched 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. The energy crisis is no excuse for unacceptable behaviour towards any customer, particularly those in vulnerable circumstances.”
Business secretary Grant Shapps said: “Switching customers - and particularly those who are vulnerable - to prepayment meters should only ever be a last resort and every other possible alternative should be exhausted. These findings suggest British Gas are doing anything but this."