British Gas, one of the UK's largest energy suppliers, has agreed to pay £163.2 million as compensation to customers who were affected by unfair practices related to prepayment meters.

This settlement comes after scrutiny over the treatment of these customers, many of whom were charged higher rates or faced other disadvantages compared to standard meter users.The compensation is intended to reimburse affected households and address discrepancies in billing and service.

Regulators have been increasing oversight of energy companies to ensure fairness and transparency, and this case highlights the financial and reputational risks for companies that fail to treat customers equitably.

The payment is expected to benefit tens of thousands of consumers across the country and may prompt other energy providers to review their policies to avoid similar penalties.