British Gas to be probed over £60 charge if you switch deal

WATCHDOGS are investigating evidence that British Gas misled customers into thinking they would be charged up to £60 to switch to a cheaper deal.

Industry rules clearly state that customers on a fixed-term tariff can move for free during the final 49 days of their deal.

But British Gas has been accused of telling customers they would have to pay a hefty penalty if they wanted to switch within this period.

The Ofgem probe comes as the ‘Big Six’ energy firms are already under intense pressure from MPs and consumer campaigners to treat their customers more fairly.

Last year, competition watchdogs accused them of overcharging on more expensive standard variable tariffs by a total of £1.4billion a year. Ofgem launched its investigation after receiving a dossier of evidence from consumer website Moneysavingexpert.

This found that a number of major energy firms had wrongly told customers in emails or in their literature that they would have to pay exit fees. It is not known if any paid the charge.

The regulator said it is also talking to Npower and Eon about their exit fee policies but is not investigating them.

Moneysavingexpert founder Martin Lewis said: ‘ The rules are very plain; you cannot and should not be charged exit penalties if your switchover takes place within the last 49 days of your energy fix.

‘At least two firms – British Gas and Npower – have wrongly put that they would charge in their official literature.

‘At best they are careless in the way they treat customers; at worst they are trying to bully them into staying with misinformation.

‘I’m delighted Ofgem is getting tough with them following our investigation.’ British Gas could face a hefty fine and be ordered to compensate affected customers if it is found to have breached its licence.

The consumer website lodged a formal complaint with Ofgem about British Gas, Npower and Eon in March.

Its evidence included emails to Npower customers applying to switch within the last 49 days of their deal telling them they would have to pay exit fees.

Npower blamed a ‘ system error’ and said it would change its emails.

The dossier also provided examples of British Gas giving the wrong information in official literature. Ofgem added that ‘ this investigation does not imply we have made any findings about non-compliance’.

Before the election, Theresa May promised an energy price cap but this has been dropped. Instead Ofgem was told by ministers to protect customers on the poorest value tariffs.

A company spokesman said: ‘British Gas will co- operate fully with Ofgem to address the issues raised.’

An Eon spokesman said: ‘As always we’ll continue to work with Ofgem as appropriate.’ Npower declined to comment.

‘The rules are very plain’