Centrica (LSE:CNA) said its British Gas division will contribute £20 million to the Ofgem Voluntary Redress Fund after the UK energy regulator concluded its investigation into historic warrant-based prepayment meter installations carried out between 2018 and 2023.
The investigation found that some vulnerable customers had prepayment meters installed involuntarily without receiving the appropriate level of care and support. British Gas apologised for the failings, suspended the practice of warrant-based installations, stopped using third-party field debt collection agencies, and introduced enhanced governance procedures and protections for vulnerable customers.
Debt Relief and Customer Compensation Measures
As part of the settlement, British Gas will conduct a review of historical customer cases and extend compensation to affected customers covering the 2018–2021 period. The company also plans to write off as much as £70 million in energy debt owed by vulnerable households.
British Gas stated that eligible customers will not need to take any action to receive compensation or debt relief. In addition, the company will establish a Vulnerable Energy Customers Debt Advisory Panel for a two-year period to help develop industry best practices as household energy debt across the UK is projected to approach £7 billion.
Centrica said the measures are not expected to alter its 2026 financial guidance, limiting the immediate financial effect on the business while reinforcing its focus on regulatory compliance and customer protection.
Financial Performance and Market Outlook
The company’s outlook reflects mixed financial fundamentals. Strong revenue growth and consistently positive free cash flow have been offset by volatile earnings performance, including a net loss reported in 2025.
Technical indicators remain moderately supportive, with the stock trading above key longer-term moving averages and momentum indicators remaining broadly neutral. Valuation metrics also appear balanced, supported by a moderate price-to-earnings ratio and dividend yield.
More About Centrica
Centrica is a UK-based energy group listed on the London Stock Exchange, operating primarily through its British Gas subsidiary. The company supplies gas and electricity to residential customers across the UK and provides related energy services.
The group has increasingly focused on supporting vulnerable customers amid rising levels of household energy debt across the sector.
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