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British Gas is being investigated by Ofgem over its handling of changes to how its prepayment meter (PPM) customers top up their accounts.
The supplier recently switched its PPM top-up provider from PayPoint to Payzone and from January 1 increased the minimum payment from £1 to £5 due to “increased transaction costs”.
The regulator says it is looking into concerns that the supplier’s handling of these changes led to “customer confusion and harm”.
Specifically, Ofgem has asked British Gas to explain its decisions and analysis of the impact the changes would have on its customers. It will then assess whether it took appropriate steps to identify and manage key risks.
After becoming aware of the decision to increase the minimum top-up amount, Ofgem stressed the importance of ensuring customers were not caught off guard by the change, and that the supplier appropriately managed risks associated with the increased minimum.
“Despite closely engaging the supplier before their two operational changes went live, we quickly became aware of a variety of issues which arose and have been concerned that these issues may have led to poor customer outcomes”, the regulator said.
Earlier this month, British Gas reversed its decision to increase the top-up payments, a move welcomed by Ofgem.
In response to the case, British Gas said it is “fully co-operating with Ofgem” on the compliance case.
A spokesperson said: “After listening to feedback, we made the decision to reverse the change to our minimum top up and move it back to £1. The aim of the increased minimum top up was to keep our costs down in order to offer our customers the best value, however we are happy to change this decision and continue to look at ways that we can help our most vulnerable customers.
“It is vital that our prepayment customers are able to access this important service. Ultimately, we intend that more of our customers will be closer to a top up point as Payzone has committed to adding new locations where we find a customer need – especially in rural areas.”
Ofgem stressed that the opening of the case does not imply it has made any findings about non-compliance by British Gas.
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