British Gas refuses to admit prepayment meter failings leaving MPs 'astonished'
MPs declared that they are “astonished” British Gas are not admitting to any failings over the forced installation of prepayment metres.
Energy companies and debt collectors today faced a dramatic grilling in a joint session with the Business and Justice Committees following reports of debt collectors breaking into vulnerable customers' homes to fit prepayment meters on behalf of British Gas.
Some of the "vulnerable" customers reported in an investigation included a single father with three young children and a mother with a four-week-old baby.
Labour MP Darren Jones slammed Chris O'Shea, chief executive at Centrica, British Gas’s owner, who said he would wait “to see the result of the investigation” into British Gas before admitting any wrongdoing.
The chair of the Business, Energy and Industrial Strategy Committee said his response was “astonishing… given the stories of real situations that have been reported”.
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Chris O'Shea, chief executive at Centrica, which owns British GasMr Jones went on: “You're here today saying that you don't know whether those are legitimate stories or not. These were real people that were reported in real time by investigative journalists, with your employees and your agents, causing enormous amounts of distress to them and you're not even acknowledging that that was something that happened.”
An investigation by the Times found are obtaining court warrants which give them the legal right to enter a property and fit a prepayment meter if customers haven't paid their bills.
Reporters went undercover with debt-collecting contractor Arvato Financial Solutions and joined agents who force-fit the meters.
Debbie Nolan, managing director at Arvato, was slammed during the session for her response to a question asking what the most rewarding part of her job was.
She claimed: “The most rewarding part is that we do get plenty of 'thank yous' from individuals and customers who have found that the visit to their property has been helpful to them…
“People in particularly vulnerable situations aren't able to make telephone calls or understand letters so that first initial visit is actually very helpful to some people.”
Labour MP Darren Jones, chair of the Business, Energy and Industrial Strategy CommitteeLabour MP Ian Lavery said he found her comment “absolutely unbelievable” especially given the huge profits energy companies are raking in.
He said: “I'm sure that people don't welcome you in, open the door and see you come in and put the meter where they might want - these are the most vulnerable people in our communities.
“That's why your companies are making fortunes from the energy companies who in turn are making fortunes at a time where people can barely put bread on the table because of the cost of living crisis and yet you’re sitting in front of this committee, suggesting that the most rewarding part of the job is the thank you letters you get from individuals.
“I just find that absolutely unbelievable. I'll just leave it there.”
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Centrica reported record profits of £3.3billion for the 2022 financial year - sparking fury.
Mr O’Shea said attempts are always made to contact vulnerable people before forcibly installing a prepayment meter.
But he explained that sometimes people can’t be reached - and when no contact has been made, they are unable to determine who is vulnerable or not.
The Centrica boss said there needs to be “a common definition amongst service providers as to what vulnerability is and to have a central register that would make it far easier” to identify people.
He said it should go "beyond just the energy industry" to ensure all service companies know who is vulnerable or not, even if they can’t get in contact with them, as long as a central register is kept up to date.
Mr O’Shea added there is a “misconception” that there's a large premium on prepayment meters, saying: “The cheapest electricity you buy in the market today is under the prepayment meter.”
He added that switching to prepayment meters often helps people reduce their debt.
last year because they ran out of credit on their meter.
An estimated 600,000 people were forced to make the switch after racking up debt with their energy supplier last year, compared with 380,000 in 2021, according to Citizens Advice.
People using prepayment meters pay for their gas and electricity by adding credit to a card or key in a corner shop or Post Office.
If they fail to top up their meter, they could have their power cut off.
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