British Gas Fined £2.5m By Ofgem

Energy regulator Ofgem has fined British Gas £2.5 million for breaching regulations setting standards for the way energy companies handle customer complaints.

The investigation found that British Gas failed to re-open complaints when the customer had indicated that it had not been resolved and also failed to put in place adequate processes for deadline 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."

Since Ofgem started the investigation in June 2010, British Gas has taken action to improve its complaint handling systems and ensure it is compliant with Ofgem's regulations.

Ofgem is currently investigating Npower and EDF Energy for complaint handling; Scottish Power, Scottish and Southern Energy, EDF Energy and Npower for misselling, and is undertaking two investigations into Scottish Power for potentially misleading marketing and the difference between its Standard Credit and Direct Debit Tariffs.

(CD/BMcC)