Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Gas complaints hit new high

Glenda Cooper
Thursday 07 September 1995 23:02 BST
Comments

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.

GLENDA COOPER

More complaints about British Gas have been received so far this year than during the whole of 1994, the Gas Consumers' Council disclosed yesterday.

The company's chief executive Cedric Brown - who has been at the centre of some of the controversy over a 75 per cent rise that took his salary to pounds 475,000 - yesterday apologised for the ''difficulty" customers had faced during the "massive" corporate changes of the past 18 months.

Complaints to the consumers' council began to rise in the spring of 1994, as British Gas became embroiled in a succession of controversies over executive pay, job cuts, service reductions and direct-debit payment discounts. By the start of 1995, widespread hostility from customers was apparent. Complaints in January were 172 per cent up on January 1994.

After criticism from the consumers' council, the Government warned British Gas that it was in danger of becoming the first company to lose a charter mark for public service.

But the council said yesterday there were suggestions that the company was recognising the error of its ways and had begun to address public concerns.

Its director, Ian Powe, said the council had received 24,999 complaints in the first six months of 1995 compared with 24,359 during 1994 and 20,427 in 1993. "In fairness, the rate of increase in complaints is beginning to slow," he said. "What that means to us is that the measures which British Gas has put in place after realising that it had gone too far in staff cuts, closure of customer services facilities etc, are starting to pay off. It has been taking on more staff and re-opening some of the customer service facilities it closed."

The news came as it was revealed that British Gas profits had dipped for the first half of the year. The company blamed a series of warm winters, new supplies and regulatory constraints for the surplus of gas, that forced down prices.

Pre-tax profits fell to pounds 797m from pounds 853m in the first six months of 1994. Earnings per share were cut to 9.8p from 11.3p, but the interim dividend for shareholders has been held at 6.4p per share.

Labour's consumer affairs spokesman Nigel Griffiths accused the Government of sitting on the sidelines as British Gas went from bad to worse. "The message on the day that these profit figures are announced is that British Gas made pounds 1.368bn in profits last year, pounds 43 every second, but slashing jobs and axing customer services has hit customers hard. 18 million customers are losers. Directors are big gainers, sharing big pay increases and share options."

New gas contracts, page 20

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