British Gas is set to refund £2.65 million to around 100,000 customers who were incorrectly charged exit fees. The energy giant was found to have made errors in applying these charges, particularly when customers were switching suppliers during the designated 'switch window' or when moving to a new property.
The issue came to light following an investigation by the consumer advice website Money Saving Expert (MSE), which highlighted numerous instances of customers being wrongly penalised. Under energy market rules, customers are typically allowed to switch suppliers without incurring exit fees during the final 49 days of their contract, known as the 'switch window', or when relocating to a new address.
Ofgem, the energy regulator, has confirmed that British Gas will now proactively contact all affected customers to arrange the refunds. These refunds will not only cover the original incorrect exit fee but will also include an additional 8% goodwill payment, aiming to compensate customers for the inconvenience caused by the error.
A spokesperson for Ofgem emphasised the importance of energy suppliers adhering to their obligations and treating customers fairly, particularly concerning switching processes. They stated that this action underscores the regulator's commitment to ensuring compliance within the energy market and protecting consumer interests.
The incident highlights the ongoing scrutiny faced by energy companies regarding billing accuracy and customer service. With the cost of living remaining a significant concern for many households, transparent and correct billing practices are more crucial than ever. This move by British Gas, spurred by consumer advocacy, serves as a reminder for all energy providers to review their internal processes.