The resumption comes as household energy debt across the country is forecast to hit £7billion this year.
That mounting debt is ultimately passed on to all bill payers, adding more than £80 to the average annual household energy bill. Ofgem said last week it was reviewing whether to relax its rules to address the spiralling problem.
British Gas’s parent company Centrica said the approval brought it into line with all other major suppliers. A spokesman said the company’s approach would include “robust vulnerability and affordability checks” and additional safeguards beyond regulatory requirements, including four weeks of proactive support to help customers adjust to prepayment.
The company said it would seek to engage early with struggling customers and offer flexible, affordable repayment options wherever possible.
A government spokesperson said: “This is a regulatory decision by Ofgem. We cannot allow past rogue practices to be repeated, where prepayment meters were wrongly installed in the homes of vulnerable people. We are closely watching to make sure companies protect their customers and act within Ofgem’s rules.”
Ofgem said it would continue to monitor suppliers closely and would take action against any company found to be breaking its rules.