British Gas pays £2.65m in refunds for invalid exit fees and overcharging
British Gas has paid £2.65 million in refunds, compensation and redress after 94,211 customers were wrongly charged and 2.5m were misinformed about exit fees.
Regulator Ofgem had opened an investigation in July 2017 following concerns raised by MoneySavingExpert.com, which found that British Gas had provided 2.5m customers with incorrect terms and conditions that stated exit fees were payable during the 49 day period before their fixed deal expires.
Under licence conditions, customers should have been entitled to switch fees at any time during the "switching window" without being charged an exit fee.
British Gas wrongly charged 1,698 of its fixed deal customers exit fees totalling £64,968 when they changed supplier during the switching window.
It has also had to pitch into Ofgem’s consumer redress fund.
Anthony Pygram, director of conduct and enforcement at Ofgem, said: "British Gas failed its customers who were coming to the end of their fixed contracts and switched supplier by unfairly penalising them and applying charges in error. Many more customers could have been deterred from getting a better deal due to the incorrect terms and conditions.
"Our enforcement action against British Gas sends a strong message to all suppliers that they must respect their customers’ rights during the switching window and always treat customers fairly."