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British Gas staff mis-sold deals, says regulator Ofgem | British Gas staff mis-sold deals, says regulator Ofgem |
(about 1 hour later) | |
The UK's biggest energy supplier, British Gas, mis-sold energy deals by making exaggerated claims to potential customers, the regulator has said. | The UK's biggest energy supplier, British Gas, mis-sold energy deals by making exaggerated claims to potential customers, the regulator has said. |
Ofgem said British Gas sales staff did not make accurate comparisons between suppliers' deals, and so made overblown claims about savings for switching. | Ofgem said British Gas sales staff did not make accurate comparisons between suppliers' deals, and so made overblown claims about savings for switching. |
The cases involved British Gas staff working in Sainsbury's stores nationwide between 2011 and 2013. | The cases involved British Gas staff working in Sainsbury's stores nationwide between 2011 and 2013. |
An average of £130 compensation has been paid to 4,300 affected customers. | An average of £130 compensation has been paid to 4,300 affected customers. |
The company has been unable to contact another 1,300 affected customers, so their compensation will also go into a fund to help vulnerable customers. | The company has been unable to contact another 1,300 affected customers, so their compensation will also go into a fund to help vulnerable customers. |
'Poor behaviour' | 'Poor behaviour' |
The total compensation bill is £566,000, with a further £434,000 being paid into the same fund as part of the penalty. | The total compensation bill is £566,000, with a further £434,000 being paid into the same fund as part of the penalty. |
The payout is modest in comparison to some mis-selling penalties handed down to some energy companies in recent years. | The payout is modest in comparison to some mis-selling penalties handed down to some energy companies in recent years. |
In May, E.On agreed to a record £12m penalty for phone and doorstep mis-selling, in addition of compensation payments of between £3m and £8m. A number of other energy suppliers also faced bills for this type of mis-selling. | In May, E.On agreed to a record £12m penalty for phone and doorstep mis-selling, in addition of compensation payments of between £3m and £8m. A number of other energy suppliers also faced bills for this type of mis-selling. |
"Ofgem expects all suppliers to put this poor behaviour behind them and really start acting in a way that will help consumers trust energy suppliers. Where they don't, Ofgem will act," said Sarah Harrison, of Ofgem. | "Ofgem expects all suppliers to put this poor behaviour behind them and really start acting in a way that will help consumers trust energy suppliers. Where they don't, Ofgem will act," said Sarah Harrison, of Ofgem. |
'Swift action' | 'Swift action' |
In the British Gas case, staff failed to make it clear to potential customers that Sainsbury's Energy was actually being supplied by British Gas. | In the British Gas case, staff failed to make it clear to potential customers that Sainsbury's Energy was actually being supplied by British Gas. |
They also compared monthly direct debit bills to those for people who made quarterly payments. As a result this exaggerated the potential savings available. | They also compared monthly direct debit bills to those for people who made quarterly payments. As a result this exaggerated the potential savings available. |
Other potential customers were approached by sales staff at the Westfield Shopping Centre, at Shepherd's Bush in west London. | Other potential customers were approached by sales staff at the Westfield Shopping Centre, at Shepherd's Bush in west London. |
British Gas said that it had discovered the issue through its own internal checks, then took "swift and decisive action" to contact and compensate customers, before contacting Ofgem. | British Gas said that it had discovered the issue through its own internal checks, then took "swift and decisive action" to contact and compensate customers, before contacting Ofgem. |
"We are very sorry and have ensured no customer will be out of pocket as a result," said Ian Peters, managing director of British Gas Residential. | "We are very sorry and have ensured no customer will be out of pocket as a result," said Ian Peters, managing director of British Gas Residential. |
A spokeswoman for Sainsbury's said: "As you would expect, we have taken this very seriously and ensured British Gas compensated customers." | A spokeswoman for Sainsbury's said: "As you would expect, we have taken this very seriously and ensured British Gas compensated customers." |
Are you affected by this? You can share your experience with us by emailing haveyoursay@bbc.co.uk using "British Gas" as a subject heading. |