British Gas arm ordered to pay £5.6m by Ofgem

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A unit of British Gas is to pay £5.6m in fines and compensation after Ofgem found the company incorrectly blocked businesses from switching suppliers.British Gas Business also failed to give some businesses notice that their contract was due to end.It has paid almost £1.3m to affected businesses and will pay a further £3.45m into an energy efficiency fund. It will also pay a £800,000 penalty.

British Gas Business said it was “sorry” the errors had occurred.After investigations by Ofgem, British Gas Business was found to be incorrectly blocking business customers from switching to other suppliers in addition to failing to notify customers when their contracts were close to expiring.Ofgem found that, between 2007 and 2012, 5.6% of objections made by British Gas Business to business customers who wished to switch suppliers were invalid.Furthermore, specific reasons as to why businesses were being prevented from switching were not communicated and there were no details for customers on how the issues could be resolved.

via BBC News – British Gas arm ordered to pay £5.6m by Ofgem.

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