Centrica (LON: CNA) shares fell on Friday after the British Gas owner announced a package of financial penalties and compensation measures totalling up to £90 million linked to its controversial use of warrant-based prepayment meter installations.
Shares in the FTSE 250 energy giant dropped around 2.9% to 196.4p — their lowest level of the session — after the company revealed that British Gas has agreed to pay £20 million into Ofgem’s Voluntary Redress Fund following the regulator’s investigation into legacy prepayment meter practices.
The probe, which covered activity between February 2018 and February 2023, was resolved through alternative action rather than formal enforcement.
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On top of the Ofgem payment, British Gas said it would write off up to £70 million in energy debt owed by vulnerable customers and undertake a comprehensive review of customer records from the relevant period, with redress and compensation to be paid to those affected — including customers from the 2018–21 window who had not previously received payouts.
Chief Executive Chris O’Shea issued a fresh apology, saying: “What happened should never have happened, and I am sorry to the prepayment customers who were affected.”
The scandal first erupted in early 2023 when it emerged that British Gas had used third-party contractors to force-fit prepayment meters in the homes of vulnerable customers, prompting public outrage and a parliamentary inquiry. British Gas immediately halted the practice at the time and has not resumed it.
Centrica stressed the measures are not expected to impact its 2026 financial guidance.
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