Centrica’s British Gas to Pay £20m and Wipe Debts After Ofgem Probe

An update from Centrica ( (GB:CNA) ) is now available.

Centrica’s British Gas unit will pay £20m into Ofgem’s Voluntary Redress Fund after the regulator closed its investigation into legacy warrant-based prepayment meter installations between 2018 and 2023. The probe found some vulnerable customers were wrongly subjected to involuntary prepayment meters and not treated with appropriate care, prompting British Gas to apologise, halt such installations, end the use of third‑party field debt collectors and overhaul governance and safeguards for vulnerable customers.

As part of the resolution, British Gas will review historic customer records, extend compensation to affected customers for 2018‑21 and write off up to £70m of energy debt for vulnerable households, while affirming that no customer action is required to receive redress. The company will also create a Vulnerable Energy Customers Debt Advisory Panel for two years to develop best practice as UK household energy debt is forecast to approach £7bn, and Centrica said the measures are not expected to affect its 2026 financial guidance, limiting immediate financial impact for investors while signalling a stronger focus on consumer protection and regulatory compliance.

The most recent analyst rating on (GB:CNA) stock is a Buy with a £225.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.

Spark’s Take on CNA Stock

According to Spark, TipRanks’ AI Analyst, CNA is a Neutral.

Overall score is driven primarily by mid-tier financial performance: strong revenue momentum and consistently positive free cash flow are offset by volatile bottom-line results (net loss in 2025) and a balance sheet that remains only moderately stable. Technicals are mildly supportive with the stock holding above key longer-term moving averages and neutral momentum. Valuation is reasonable with a moderate P/E and dividend yield.

To see Spark’s full report on CNA stock, click here.

More about Centrica

Centrica is a UK-based energy company listed on the London Stock Exchange, primarily operating through its British Gas subsidiary to supply gas and electricity to residential customers. The group focuses on retail energy supply and related services in the UK market, with particular emphasis on supporting vulnerable customers amid rising sector-wide energy debt.

Average Trading Volume: 20,512,357

Technical Sentiment Signal: Buy

Current Market Cap: £9.16B

See more data about CNA stock on TipRanks’ Stock Analysis page.