British Gas to be investigated by Ofgem over claims it would charge customers for switching suppliers
Energy suppliers should not charge customers if they decide to switch during a 49-day period before a fixed-term energy deal comes to an end
BRITISH Gas is to be investigated by energy regulator Ofgem over concerns that it is misleading customers over fees for switching to other providers.
Under the current rules, energy suppliers should not charge customers if they decide to switch during a 49-day period before a fixed-term energy deal comes to an end.
But Ofgem is now looking into allegations that British Gas breached licence conditions and wrongly told customers they would be charged when they switched away to other providers.
The investigation comes after consumer’s website MoneySavingExpert (MSE) sent a formal letter of complaint to the regulator.
MSE said they were contacted by confused customers who had been told by suppliers – including British Gas and Npower - that they would have to pay up to £60 for switching, despite being within the 49-day period.
British Gas said it will co-operate fully with Ofgem to address the issues raised in today’s announcement.
Ofgem added that the opening of its investigation did not imply it had made any findings about non-compliance.
"We have reviewed the evidence received to date, after MoneySavingExpert raised this issue, and will be conducting a thorough investigation to establish whether British Gas failed to comply with the conditions of its licence," an Ofgem spokesperson said.
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Martin Lewis, the founder of MoneySavingExpert.com, said he was “delighted” Ofgem was getting tough following the website’s investigation.
"At least two firms, British Gas and Npower, have wrongly put that they would charge in their official literature,” he said.
“At best they [British Gas and Npower] are careless in the way they treat customers, at worst they are trying to bully them into staying with misinformation,” he added.
Alex Neill, from consumer group Which? said suppliers should be making it as easy as possible for customers to switch.
"If British Gas is found to have put off customers who wanted to switch, then the regulator must swiftly hold them to account," she added.
Ofgem earlier this week said it wants to “take the hassle” out of switching suppliers by imposing new rules that will make it easier for customers to find cheaper deals on price comparison websites.
HOW TO FIND A CHEAPER ENERGY DEAL
FIRSTLY, you’ll need to have a recent bill to hand. This will have all the details you need, including the name of your tariff and your recent spending on gas.
- Use a comparison website like uSwitch.com or Energyhelpline.com to compare tariffs and find a cheaper deal. You could save up to £400 a year if you’ve never switched before.
- Other services like MoneySavingExpert’s Cheap Enegy Club will let you set up an email reminder that alerts you when cheaper deals become available.
- Compare prices and before you switch check to see if you can get cachback from a website like Quidco or TopCashback.
The watchdog will also trial a new “Check Your Energy Deal” online switching service aimed at helping customers who have been on poor value standard variable tariffs for three years or more.
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