British Gas has been ordered to pay out £2.65 million compensation by energy regulator Ofgem for wrongly charging consumers exit fees and putting others on more expensive tariffs, following a campaign by MoneySavingExpert.com.
The country’s biggest energy supplier wrongly informed 2.5 million customers that exit fees were chargeable when they wanted to quit their fixed energy tariff, contrary to Ofgem guidelines.
Ofgem’s rules on switching are clear – if you’re in the last 49 days of your fix, you DON’T have to pay an exit fee and can switch to a different provider penalty-free.
British Gas also wrongly charged 94,211 customers its more expensive standard variable tariff rate after they decided to switch to a new supplier, owing to a system error.
It was in December 2016 that the first of scores of confused MoneySavingExpert readers began contacting us about exit fees and we took up their cause with the regulator.
More to follow…
To check if you can switch and save £100s on your gas and electricity, use our free Cheap Energy Club.