British Gas fined 5.6m pounds for switching errors

10th Apr 2014 07:09

The UK energy regulator has fined the business arm of Centrica 5.6m pounds for errors in its switching and renewal processes.Ofgem found British Gas Business incorrectly blocked businesses from switching and failed to give some businesses notice that their contract was due to end.The watchdog said the supplier had already paid nearly £1.3m to affected business customers and would now pay a further £3.45m into an energy efficiency fund and an £800,000 penalty.Ofgem said customers' ability to switch fairly and easily was central to a well-functioning market.It said British Gas Business had taken swift action and had now remedied the issues.Sarah Harrison, Ofgem Senior Partner in charge of enforcement said: "British Gas Business 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."Ofgem said British Gas Business cooperated fully throughout these investigations and this has been reflected in the level of the settlement package, which would have been much higher if this had not been the case.PW