Ofgem slaps British Gas with £2.5 million fine - Gas and electricity - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Ofgem slaps British Gas with £2.5 million fine

Ofgem slaps British Gas with £2.5 million fine

Category: Gas and electricity

Updated: 27/07/2011
First Published: 27/07/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The energy regulator Ofgem has hit British Gas with a fine of £2.5 million for its failure to properly deal with customer complaints.

Ofgem said that the penalty should act as a warning to all energy firms that they must take complaint handling seriously and treat their customers fairly.

The investigation found that British Gas had:

  • Failed to re-open complaints when customers had indicated that their complaint has not been resolved
  • Not pointed customers to the Energy Ombudsman if a complaint was not resolved
  • Failed to put proper procedures in place to deal with customer complaints.

Ofgem has said that since the investigation into the firm's procedures in June 2010, British Gas has improved its complaint handling systems.

It is the second time that British Gas has been fined this month, having been hit with a £1 million penalty for misreporting how much energy it supplied.

"Today's finding highlights basic failures in British Gas' customer service, particularly in dealing with some of its small business customers, and shows Ofgem's commitment to use its powers to ensure suppliers treat customers fairly and transparency.

"We warned the industry in March that we would be backing up our plans to reform the retail market with a tough approach to enforcement.

"This £2.5 million fine against British Gas, and the other £10 million of fines imposed on the energy industry so far this year, sends a clear message to energy companies that they must abide by the rules."

The fine comes during a period when the UK 's largest energy firms have been placed under intense scrutiny.

Npower and EDF Energy are also being probed by the regulator for complaint handling, while Scottish Power, Scottish and Southern Energy, EDF Energy and Npower are all being investigated over mis-selling.

Last week, a group of MPs heaped pressure on energy firms to pay compensation to customers that were mis-sold gas and electricity deals by doorstep sellers.

If your worried about Gas & Electricity price rises, we have teamed up with energyhelpline.com to help make sure you are getting the best energy deal for you. energyhelpline.com is fully accredited to the Consumer Focus Confidence Code to compare energy for domestic consumers.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

4.8m people switched energy supplier last year

We’re often told of the amount we could save by switching energy supplier, and happily, the message seems to be getting through, with the number of consumers switching providers having reached record levels last year.

EDF cuts gas prices, but hikes electricity

EDF Energy has announced that it’s cutting gas prices for customers on its standard variable rate tariffs, but unfortunately, electricity customers could lose out, as they’ll see a rate increase from March next year.

The energy league table – are you on the best deal

Ofgem yesterday revealed its league table of energy prices, highlighting the cost of typical gas and electricity tariffs from the UK’s top suppliers. It shows just how expensive standard variable tariffs can be, and you could well be paying too much.
 
Close