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10/04/2014
British Gas Business To Pay £5.6m Fine
Corporate customers are to be compensated by British Gas Bussiness for a series of failures that prevented them from getting cheaper bills or blocking firms to change to other suppliers.
The regulator, Ofgem, said British Gas Business would pay a total penalty of £5.6m, with £800.000 of that sum in fines, on top of the £1.3m already paid to 1.200 customers who ended up paying higher bills because they were not notified when their contracts were due to expire.
The energy regulator also said that £3.45m would go to an energy efficiency fund.
The company blamed a computer error for the blocking of customers wanting to switch and said the company failed to communicate properly with those affected.
Ofgem said that 5.6% of objections British Gas Business made to customers switching suppliers between 2007 and 2012 were "invalid".
The watchdog said British Gas Business cooperated fully throughout its inquiry which began in 2012.
The regulator's enforcement partner, Sarah Harrison said that it "fully accepts its failings, has stopped the practices and corrected its processes to prevent this happening again. The company has taken responsibility for its actions and this package strikes a balance of penalty for the company and redress for affected consumers."
Managing director of British Gas Business Stephen Beynon, said: "We're sorry these errors occurred and have worked swiftly to change our computer systems and processes, putting controls in place to stop this happening again."
(CVS)
The regulator, Ofgem, said British Gas Business would pay a total penalty of £5.6m, with £800.000 of that sum in fines, on top of the £1.3m already paid to 1.200 customers who ended up paying higher bills because they were not notified when their contracts were due to expire.
The energy regulator also said that £3.45m would go to an energy efficiency fund.
The company blamed a computer error for the blocking of customers wanting to switch and said the company failed to communicate properly with those affected.
Ofgem said that 5.6% of objections British Gas Business made to customers switching suppliers between 2007 and 2012 were "invalid".
The watchdog said British Gas Business cooperated fully throughout its inquiry which began in 2012.
The regulator's enforcement partner, Sarah Harrison said that it "fully accepts its failings, has stopped the practices and corrected its processes to prevent this happening again. The company has taken responsibility for its actions and this package strikes a balance of penalty for the company and redress for affected consumers."
Managing director of British Gas Business Stephen Beynon, said: "We're sorry these errors occurred and have worked swiftly to change our computer systems and processes, putting controls in place to stop this happening again."
(CVS)
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