British Gas axes late payment fee

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British Gas has dropped plans to introduce a controversial £5 late payment penalty.

New managing director Phil Bentley - who took up the post on 1 March - said he had ditched the charge after listening to the views of customers.

Consumer groups had called on British Gas to scrap the charge, which was due to come into force this month.

The company had planned to impose the fee on any customer more than 28 days late in settling their bill.

"This is a real victory for consumers and for common sense," said Audrey Gallacher, head of company performance at industry watchdog Energywatch.

"We're pleased the company has listened and made this U-turn."

However, Mr Bentley warned that the decision did not mean the utility group was "going soft" on late payers.

"It costs us £20m each year which in effect places a higher burden on those customers who do pay their bills on time - and we will be more rigorous than ever to pursue these amounts owed," he said.