British Gas vows to NOT remotely switch customers to prepayment meters

British Gas owner Centrica has revealed it is committing £10 million in customer support for vulnerable prepayment customers.

The funding pledge is part of the introduction of new policies “to ensure aid reaches those who need it most,” Centrica said Wednesday.

Under the new policy, Centrica customers will not be remotely switched to prepayment meters this winter unless specifically requested by a customer.

According to research from Citizens Advice last week, around 3.2 million people in Britain had no credit on their prepaid meter last year, the equivalent of one every 10 seconds.

Centrica said discretionary support, such as a non-refundable credit of up to £250 on prepayment meters, will be made available for those struggling with energy costs.

“British Gas will identify those who would benefit the most and there is no need for customers to sign up,” the group added.

Centrica said it will also implement “enhanced processes” around assessing and identifying vulnerable customers to ensure support is targeted where it’s needed and self-interruptions are identified.

The company said it would also ensure those struggling with energy costs have smart prepayment meters to ensure any issues are quickly identified.

While Centrica stated that customers would not be remotely switched to prepayment meters, it did not say in-person installations would not take place.

Many households have moved from monthly bills to pay-as-you-go rates through their smart meters, without energy suppliers having to come in to install a meter.

Labor has called for an immediate moratorium for the duration of the winter on the forced installation of prepayment meters.

On Tuesday, Secretary of Business, Energy and Industrial Strategy Grant Shapps told MPs that officials were “actively working” on the issue of the extent of the lockdown for people with prepaid utility meters.

He told MPs: ‘We don’t want people cut off during this cold weather.’

Chris O’Shea, CEO of Centrica, said today, “We know that some prepayment customers disconnect from themselves and don’t come forward for help, so we’ve revised our policy to do more to target support to this group.

‘As a responsible company, we are committed to supporting our customers through this crisis – our work with the British Gas Energy Trust provides grants and money advisory services.

“In addition to helping our clients with much-needed cash grants, I am very proud of how our teams are providing expert advice and support during this busy time to help people through this crisis.

‘Our call centers help about a million energy customers every month with their bills and our technicians are at home every day to advise customers on how they can be more energy efficient and make savings.’

Centrica added: ‘British Gas has a £50m voluntary support package and has already pledged to contribute 10 per cent of its energy supply profits to the British Gas Energy Support Fund for the duration of the energy crisis, with retroactive effect from the beginning 2022.

“The £18m British Gas Energy Support Fund has provided grants of up to £1,500 to those in need since the start of the crisis.”

On January 12 Centrica raised earnings expectations again as volumes of its power generation and gas production businesses remained strong amid rising consumer energy prices.

In a brief trading statement, the company said it expected full-year adjusted earnings per share to be above 30 pence, compared to a previous estimate of between 15.1 pence and 26 pence on Nov. 10. The company said it expected net cash flow to exceed £1 billion by 2022.

The group revealed hefty half-year profits of £1.34 billion in July.

Centrica Shares rose 0.99 percent or 0.96 p to 98.18 p today, after rising more than 30 percent in the past year.