British Gas repays £1m for mis-sold deals

 

Simon Read
Friday 04 July 2014 23:48 BST
Comments
British Gas has had to give back £566,000 in total
British Gas has had to give back £566,000 in total (Getty Images)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

British Gas was yesterday forced to pay back £1m to its customers after mis-selling them energy deals.

The company's sales people misled customers in Sainsbury's stores and the Westfield shopping centre in west London by telling them they could save money by switching. But many paid more with Sainsbury's Energy or British Gas than they would have if they had remained with their current supplier.

Around 4,300 customers have been handed an average compensation payment of £130, meaning British Gas has had to give back £566,000 in total.

It has also been forced to hand £434,000 to the British Gas Energy Trust for around 1,300 ex-customers that it hasn't been able to track down. That cash will used to directly benefit consumers.

Ian Peters, managing director of residential energy at British Gas, was quick to apologise yesterday for the latest mis-selling scandal: "We are very sorry and have ensured no customer will be out of pocket as a result."

But Richard Lloyd, executive director of the consumer group Which?, said the apology was far too late. "One of the reasons consumer trust in the energy industry is so low has been because of the repeated scandals," he pointed out. "This kind of poor practice is completely unacceptable."

Jeremy Cryer, energy spokesperson at Gocompare, said: "One million pounds is a drop in the ocean to British Gas owner Centrica, which made a £2.7bn profit last year. This is another blow to public trust for the best-known name in the UK energy industry at a time when energy companies are already facing an investigation by the Competition and Markets Authority."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in