British Gas - PPM Installations - Provisional Order

Orders
  • Open - Provisional Order issued
  • Provisional Order confirmed
  • Decision Proposed - Confirm Provisional Order
  • Decision Proposed - Revoke Provisional Order
  • Notice to rectify
  • Notice to revoke licence
  • Closed
Publication date
Industry sector
Supply and Retail Market
Licence type
Electricity Supply Licence
Gas Supplier Licence

Decision not to confirm Provisional Order

On 2 February 2023, the Authority issued a Provisional Order to British Gas Trading Ltd. In accordance with section 25(2) of the Electricity and Act 1989 and section 28(2) of the Gas Act 1986.

The Authority has engaged with British Gas throughout the period of the Provisional Order being in place. The Authority has now accepted formal and legally enforceable undertakings from British Gas whereby British Gas has undertaken that it will not recommence installations of PPMs under a Relevant Warrant (or the remote switching of meters to pre-payment mode without customer consent), or disconnection of any Domestic Customers, for reasons of unpaid charges until 30 September 2023, or any earlier date of release agreed by the Authority.

The Authority shall agree to release British Gas from the undertaking before 30 September 2023. If British Gas demonstrates to the Authority’s reasonable satisfaction before 30 September 2023 that it will act in accordance with the Relevant SLCs and the new Code of Practice, it will be permitted to recommence installations of PPMs under a Relevant Warrant (or the remote switching of meters to pre-payment mode without customer consent), or disconnections of any Domestic Customers for reasons of unpaid charges.

ln light of the formal undertaking given by British Gas, the Authority will not confirm the Provisional Order, which will, under legislation, lapse on 2 May 2023. The wider investigation into PPM installations under a Relevant Warrant remains on-going

Issue of Provisional Order

On 2 February 2023, the Gas and Electricity Markets Authority (“the Authority) issued a Provisional Order to British Gas Trading Ltd. (trading under: “British Gas”) (“BG”) in accordance with section 25(2) of the Electricity Act 1989 and 28(2) of the Gas Act 1986.

It appears to the Authority that BG is contravening or is likely to contravene Standard Licence Conditions 0, 13.1 (a) and (d), 27.11A, 28.1A, 28.1B and 28B.1. The behaviours that gave rise to these concerns (and resulted in the issuing of the Provisional Order) relate to BG’s procedures for installing of Prepayment Meters under a Relevant Warrant.

The Provisional Order sets out a number of actions for BG to complete by specified deadlines. These include the immediate cessation of the installation of PPMs under warrant, suspending disconnection of domestic customers for unpaid charges, and an independent audit. Full details are contained in the Provisional Order.