Ofgem fine British Gas £2.5 million over customer complaints

The energy regulators Ofgem are to fine British Gas a hefty £2.5 million for breach of rules and regulations following improper management of complaints from customers. Regulations were put to effect for managing complaints in late 2008, which details the level of service customers of energy providers, should be receiving on raising complaints.

Ofgem claimed that following investigation, it was identified that British Gas made no attempts to re-engage with customers on unsolved complaints and did not provide them with contacts for redress service. In addition inadequate procedures were in place for handling complaints raised by small businesses.

Regulators also reported British Gas have acted to enhance their methods of dealing with complaints and to abide under the regulations since investigations started last June. The latest fine is on top of the already £1 million imposed on British Gas for not reporting correctly the total electricity supplied.

Investigations for mis-selling are underway on npower, EDF energy, Scottish energy, Scottish power and Southern energy, while npower and EDF are also being investigated for mishandling complaints. Scottish power is being investigated further for potential misleading advertisements and for not being clear on differences between the direct debit and the normal tariffs.