British Gas penalty to pay for energy savings

10th April 2014

Related Topics

Related tags

  • Energy ,
  • Procurement ,
  • Management/saving ,
  • Conventional


Nicholas Fekete Perez

British Gas Business is to fund the installation of £3.45 million worth of energy efficiency measures in small firms, as penalty for stopping companies switching supplier

Regulator Ofgem has ordered British Gas Business to pay out £5.6 million, after investigations revealed that the energy company incorrectly stopped some of its business customers from moving to another supplier and that it failed to notify others their contracts were coming to an end.

According to Ofgem, during 2007-2012 a computer error and “inadequate” checking processes resulted in British Gas Business refusing to allow some of its non-domestic customers to change their energy provider. The computer glitch meant that 5.6% of the objections made by British Gas Business were invalid.

The firm rectified the problem in 2012, soon after Ofgem began investigating the issue, but was ordered this week to pay an £800,000 penalty and £3.2 million into an energy efficiency fund that will provide measures, such as insulation and new boilers, to micro-business customers.

A separate investigation, found that the energy supplier had also failed to notify 1,200 of its non-domestic customers, the majority of which were micro-businesses, that their tariff was about to expire. This meant that the firms, unaware they were able to look for a better deal, either continued on the same terms or were rolled over onto standard tariff rates, which were more expensive.

British Gas Business has paid back close to £1.3 million in compensation to current customers which were affected and is attempting to pay a further £150,000 to those which have moved suppliers. Ofgem has also ordered the company to pay an additional £250,000 into the energy efficiency fund.


Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.

Transform articles

Renewables account for almost half of Britain’s power generation

Solar power generation hit a new high in the last quarter as renewables accounted for almost half of Britain’s energy production, according to a report from Montel Analytics.

18th July 2024

Read more

Ahead of the UK general election next month, IEMA has analysed the Labour, Conservative, Liberal Democrat, and Green Party manifestos in relation to the sustainability agenda.

19th June 2024

Read more

Sarah Spencer on the clear case for stronger partnerships between farmers and renewable energy developers

6th June 2024

Read more

A system-level review is needed to deliver a large-scale programme of retrofit for existing buildings. Failure to do so will risk missing net-zero targets, argues Amanda Williams

31st May 2024

Read more

Chris Seekings reports from a webinar helping sustainability professionals to use standards effectively

31st May 2024

Read more

Although many organisations focus on scope 1 and 2 emissions, it is vital to factor in scope 3 emissions and use their footprint to drive business change

31st May 2024

Read more

Joe Nisbet explores the challenges and opportunities of delivering marine net gain through offshore renewables

31st May 2024

Read more

IEMA submits response to the Future Homes Standard consultation

31st May 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close