Centrica plc ("the Company")

15 May 2026

Ofgem closes investigation of British Gas's installation of prepayment meters under warrant

The Company announces that its wholly owned subsidiary, British Gas Trading Limited ("British Gas"), has agreed to pay £20m into Ofgem's Voluntary Redress Fund following Ofgem's investigation into legacy prepayment meter practices. The investigation followed issues identified in 2023, covered activity between February 2018 to February 2023, and was resolved with the regulator through alternative action.

When issues came to light three years ago, it was clear that some customers who had an involuntary prepayment meter installed were not treated with the care and respect that they deserved. There were also errors in identifying some customers in vulnerable situations who should have been excluded. British Gas apologised, immediately stopped involuntary installations, and ended the use of third‑party contractors for field debt recovery activity. The company has since strengthened governance, oversight and safeguards for vulnerable customers, which Ofgem has recognised in its decision. British Gas has not restarted warrant‑based prepayment meter installations.

In addition, British Gas will now undertake a comprehensive review of its customer records from the relevant period and provide redress and compensation wherever possible for customers who were affected. This will include compensation to affected customers during the period 2018-21 (in addition to the compensation already paid for the period 2022-23), alongside the write‑off of up to £70m in energy debt for vulnerable customers (a proportion of which may be used as compensation for some customers). Customers do not need to take any action and, where applicable, will be contacted directly by British Gas.

Chris O'Shea, Group Chief Executive of Centrica, said:

"What happened should never have happened, and I am sorry to the prepayment customers who were affected. When we get things wrong, we make them right. When these issues came to light in 2023 - we apologised, stopped the activity immediately and took rapid action to improve our processes and change how we engage with customers in debt, particularly those in vulnerable situations.

Over the last three years, we have treated this matter with the seriousness it deserves and have made changes to our practices and put safeguards in place to ensure we deliver the standards our customers have every right to expect. Providing help to those who need it most has always been a core part of what we do at British Gas, and this issue has been deeply felt by the many thousands of colleagues who work hard every day to do the right thing for our customers.''

With customer energy debt across the sector projected to rise to around £7 billion later this year, British Gas will establish the British Gas Vulnerable Energy Customers Debt Advisory Panel, including independent experts, for 24 months to support its ambition to develop industry-leading practices in the treatment of vulnerable energy customers in debt and to develop insights to help in the development of future policy in relation to vulnerable customers in debt.

Since the 2022 energy crisis, British Gas has voluntarily delivered £140 million in targeted support to customers struggling to pay their energy bills. This includes £22.4 million of direct help for prepayment customers, alongside debt relief, hardship funding and independent advice through trusted charity partners. Through the You Pay, We Pay scheme alone, more than 16,000 customers have received £12.7 million in matched payment support.

Notes

·  British Gas paused warrant-based involuntary prepayment meter installations for residential customers in early 2023 and has not restarted.

·    Industry body, Energy UK, estimates total household energy debt could escalate to more than £7 billion by the end of 2026. Energy UK raises alarm over £5.5 billion energy debt crisis - Energy UK

·   The Company does not anticipate any impact to its 2026 financial guidance, as set out in its Preliminary Results announcement dated 19 February 2026 and its trading statement dated 7 May 2026, as a result of the matters referred to in this announcement.

Centrica plc is listed on the London Stock Exchange (CNA)

Registered Office: Millstream, Maidenhead Road, Windsor, Berkshire SL4 5GD

Registered in England & Wales number: 3033654

Legal Entity Identifier number: E26EDV109X6EEPBKVH76

ISIN number: GB00B033F229