British Gas debt collectors are breaking into vulnerable customers' homes to fit prepayment meters, it has been reported.
Energy companies like British Gas obtain court warrants which give them the legal right to enter a property and fit the meter if customers haven't paid their bills.
This forces the customer to top up the meter if they want to receive gas supplies, and if they fail to do so they could have their heating cut off.
Energy companies hire third part party debt collectors to execute the warrants and "break into" homes, even when customers are known to have "extreme vulnerabilities".
This practice came to light after a reporter for The Times went undercover with debt-collecting contractor Arvato Financial Solutions and joined agents who force-fit the meters.
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Some of the "vulnerable" customers the Times reporter came across included a single father with three young children and a mother with a four-week-old baby.
Owner of British Gas, Centrica, announced it was suspending "all warrant activity" after the newspaper's article was published. The parent company will also launch an investigation into the claims.
Centrica chief executive officer Chris O'Shea told the Mirror in a statement: "Protecting vulnerable customers is an absolute priority and we have clear processes and policies to ensure we manage customer debt carefully and safely.
"The allegations around our third-party contractor Arvato are unacceptable and we immediately suspended their warrant activity.
"Having recently reviewed our internal processes to support our prepayment customers as well as creating a new £10 million fund to support those prepayment customers who need help the most, I am extremely disappointed that this has occurred.
"As a result, on Wednesday morning, we took a further decision to suspend all our prepayment warrant activity at least until the end of the winter.
"More broadly, there are clearly significant challenges around affordability and unfortunately, we don't see that changing anytime soon.
"We need to strike a balance between managing spiralling bad debt and being aware that there are those who refuse to pay and those who cannot pay. We think Government, industry and the regulator need to come together to agree a long-term plan to address this and ultimately create an energy market that is sustainable."
Grant Shapps, the business and energy secretary, ordered an urgent meeting with British Gas, adding: “I am horrified by the findings of this investigation and would like to thank The Times for shining a light on these abhorrent practices.”
Energy minister Graham Stuart will meet with British Gas this afternoon over revelations about the company forcing customers onto pre-payment meters.
The Prime Minister's official spokesman described the newly-emerged about British Gas "deeply shocking and concerning".
He said: "Rightly British Gas has suspended this practice."
Number 10 said the meeting had been called in response to reports this morning about the company's conduct.
Energy regulator Ofgem has announced it will launch an investigation.
A spokesperson said: "These are extremely serious allegations from The Times which we will investigate urgently with British Gas and we won't hesitate to take firm enforcement action.
"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 recently announced 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, and the energy crisis must not be an excuse for unacceptable behaviour towards any customer - particularly those in vulnerable circumstances."
Gillian Cooper, Head of Energy Policy at Citizens Advice, said: “It’s truly shocking to see the extent of bad practices amongst some energy suppliers.
“Our frontline advisers know only too well the desperate situations so many struggling customers have found themselves in. Time and time again we have called for a ban on forced prepayment meter installations until new protections for customers are brought in.
“Ofgem and the Government need to act now - serious reforms must be made before these suppliers can be trusted again.”
Arvato Financial Solutions told the Times it acted “compliantly at all times in accordance with the regulatory requirements”.
Arvato Financial Solutions has been contacted for comment.
