British Gas angry at £2.5m fine

The country’s biggest household energy supplier has been criticised by regulator Ofgem for breaching standards regulations.

Ofgem carried out an investigation which found that British Gas had failed to reopen complaints which were not resolved, that it failed to give customers details about services provided by the energy ombudsman, and that it did not have adequate ways of dealing with complaints from small businesses.

The findings refer to regulations which took effect from October 2008 which set out the services that domestic and business energy customers should expect if they raise a complaint.

Sarah Harrison, from Ofgem, said the findings highlighted “basic failures” in the company’s customer services and said it showed “Ofgem’s commitment to use its powers to ensure suppliers treat customers fairly and transparently”.

British Gas said the fine was “totally disproportionate”, but admitted it failed on the issue of dealing with what is termed micro businesses.

After a £4m investment, we are now confident we meet all of our regulatory requirements. British Gas spokesman

A spokesman said: “After a £4m investment, we are now confident we meet all of our regulatory requirements.”

Ofgem has said it is investigating Npower and EDF Energy for the way they handled complaints, while Scottish Power, Scottish and Southern Energy, EDF Energy and NPower are all being investigated for mis-selling.

The watchdog is also running two investigations into Scottish Power for potentially misleading marketing and the difference between its standard credit and direct debit tariffs.

Nine million British Gas customers face price rises from 18 August when gas and electricity prices are raised by an average of 18 per cent and 16 per cent respectively.