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British Gas has been made to pay £5.6 million for switching errors, Ofgem announced on Thursday.
The regulator found British Gas Business had incorrectly blocked businesses from switching and failed to notify customers their contract was due to end. Between 2007 and 2012, 5.6 per cent of objections the suppler made to non-domestic customers seeking to switch were invalid.
British Gas has paid nearly £1.3 million to affected customers. It will put a further £3.45 million into an energy efficiency fund to benefit micro-businesses and pay an £800,000 penalty.
Sarah Harrison, Ofgem senior partner in charge of enforcement, said: “The ability for consumers to switch easily and fairly is key to a well-functioning energy market. In these cases British Gas Business failed these consumers who were wrongly blocked from switching, many of them small businesses, and denied others the chance to switch to a better deal at the end of their contract.
“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.”
British Gas said the errors were caused by problems in its computer systems. The energy efficiency fund will offer free surveys to small businesses and installations of new boilers, lighting and renewable generation worth up to £6,000 a site.
Stephen Beynon, managing director of British Gas Business, 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.
“We take any failure to meet our obligations very seriously and will ensure that the new energy efficiency fund we have set up will be a real help to hundreds of small businesses. It will provide free expert advice and energy efficiency measures, such as new boilers, lighting and renewable energy, to help firms to manage their energy consumption and bills over the long-term.”
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