Ofgem fines British Gas £2.5 million

by Simon 3. August 2011 12:00

British Gas has been fined £2.5 million by Ofgem for failing to act properly when dealing with customers’ complaints.

The regulator's investigation found that British Gas failed to re-open unresolved complaints, failed to provide customers with details about the redress service provided by the Energy Ombudsman, and failed to provide adequate processes and practices for dealing with complaints from micro-businesses.

Sarah Harrison, Ofgem’s senior partner for sustainable development, said: "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 transparently.

"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."

Ofgem, the regulator of gas and electricity companies, is also investigating npower and EDF Energy for complaint handling, Scottish Power, Scottish and Southern Energy, EDF Energy and npower for mis-selling, and Scottish Power for potentially misleading marketing and the difference between its Standard Credit and Direct Debit Tariffs.

With more inflation-busting price rises likely from the remaining three of the "Big Six" they are hardly the customer's favourite industry at the moment.

Perhaps, in time, we can all switch to solar PV and, effectively, become our own energy providers. In the meantime, we can all do our best to save energy where possible and keep our bills, and hopefully our complaints, to a minimum.

[Image: Karen Roe]

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