CONTROVERSIAL private security firm Group 4 could soon be reading the meters in millions of homes, the BEN can reveal today.

British Gas has struck up a deal with Group 4 to establish a new company which could end up not only reading gas meters, but water and electricity meters too.

Group 4, which hit the headlines over bunglings when it took over the prisoner escort service, looks certain to start reading meters if the venture gets the go-ahead from the European Commission.

Hundreds of British Gas employees who currently read meters will be transferred to the new independent company which will seek contracts with gas suppliers.

And the company could tender for contracts with water and electricity companies once they are opened up to competition.

A decision on whether the company can be given the go-ahead is expected next month and the firm would start operating with existing British Gas staff shortly afterwards.

Group Four Marketing Director, David Dickinson said: "An agreement has been reached in principle and we are awaiting a decision from Europe. It is good news for the consumer because we aim to provide the definitive meter reading service for other utilities as well as gas.

"The question of standards resulting from competition is a legitimate concern but we believe the best way to deliver high quality service is to ensure the best terms and conditions for employees and we have a good relationship with the trade unions. As far as security is concerned we employ extremely stringent vetting procedures." British Gas spokesman, John Jessup said the company was being formed to comply with rules laid down by the industry regulator OFGAS which has ordered that meter reading should be made competitive.

The company will be completely separate from British Gas.

Mr Jessup said: "We have agreed the terms of a deal and the employees and unions have been kept informed all along the way.

"The British Gas meter reading workforce will be transferred to the new company and there is no question of any compulsory redundancy.

"It will be a new venture for Group 4 but customers will experience the same high quality of service and the highest standards of security."

Unions are uneasy about the change, and are worried that job security as well as terms and conditions could be eroded. But they have reluctantly accepted the plans.

Unison official Dave Johnson said: "We are co-operating with the joint venture because the government and the regulator have made it plain that there has to be competition.

"Group 4 are the best of a bad job and we are confident that despite all the publicity they've had, they have good vetting procedures.

"What we are concerned about is the downward effect of competition on terms and conditions and when everything is opened up you could get cowboy companies coming in and trying to undercut reputable firms which will have an effect on the quality of service."

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