British Gas News Update: Price Scandal

British Gas Price Scandal

British Gas News Update: Company’s overcharged customers for up to 5 years on their energy bills. Trust fund for customers created in attempt to make peace.

It has just been reported that British Gas has distributed £10 million into a trust for vulnerable customers to take advantage of due to the overcharging of prices British Gas has been operating for the past few years.

British Gas Overcharging Customers

‘ The regulator claimed that between 2006 and 2011, British Gas failed to “round down” the calorific value, a charge that covers the heat or thermal energy in the gas a customer uses.

British Gas, the UK’s biggest supplier, used four decimal points, when Ofgem asks companies to use just one.

An Ofgem spokesman said: “British Gas’ interpretation of the regulations meant that although customers didn’t pay for energy they did not receive, they paid more than regulations allow.”

Ofgem admitted the total impact on customers was “unclear”. A spokesman admitted British Gas may have adjusted the main, unit price of gas and electricity to compensate for the higher charge on calorific value but it was impossible to say.

British Gas last insisted it had done nothing wrong and none of its customers had missed out.

Asked why it was paying £10m, a spokesman said the company simply wanted to resolve the row and move on, given the growing legal fees.

In a statement, British Gas said: “We are making this donation following clarification from Ofgem that, while we believe we were operating in line with the regulations, we accept there was an alternative interpretation.”

Ofgem is expected to announce another shake-up to the market this week with proposals for simplifying the tariffs the “Big Six” can offer households.

A YouGov this weekend claimed 38pc of the public trust energy companies less than a year ago. Just 3pc trust them more.

Some 76pc of people want the Government to crack down on the energy sector.’

Obviously there has been huge uproar of this scandal in overcharging prices when already the energy sector is hugely expensive when people are going through a time when they aren’t feeling particularly cash rich in this current economics climate. To find out anymore information on the services British Gas offer, or if you require anymore information on the matter then please call the British Gas Helpline.

Original article found at. http://www.telegraph.co.uk

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