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    • British Gas pays £2.65m over invalid fees and charges
    • 06 September 2018
    • British Gas has paid £2.65m in refunds, compensation and redress after wrongly overcharging more than 94,000 domestic customers who switched to new providers. According to the regulator Ofgem, British Gas charged customers its more expensive standard variable tariff rate after they decided to switch to a new supplier, due to a system error.

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      TECs take...

      As the dust of multiple rounds of domestic energy price increases settles, the Government now looks to set its price cap for standard variable tariffs against a background of the highest wholesale energy prices for more than three years.

      As suppliers have voted with their feet and moved to new, often small new entrant supplier deals, British Gas has understandably been one of the hardest hit.

      Imagine, then, kicking these customers as they left for new deals by charging them excessive rates, exit fees, and even higher prices than those that forced them to move. British Gas has paid £2.65 million in refunds, compensation and redress but was this a pre-emptive strike to avoid an even more significant penalty from the regulator. Either way, this won’t have done much for British Gas’ already diminished reputation and their loss of over 300,000 customers in the process.