Insurance boss hired to lead British Gas through turmoil

AN insurance salesman with no energy business experience has been drafted in to run British Gas during the most turbulent time in the company’s recent history.

Britain’s energy sector is facing a major competition investigation that could result in its largest players being broken up by the regulator.

Centrica (up 0.8p to 262.9p) yesterday named Mark Hodges,

pictured, to lead Britain’s biggest power supplier, citing his experience in running massive consumer-facing businesses, first at Norwich Union then at Aviva.

His remit will be to turn around the company’s customer services and to stem the exodus that has seen it lose 2m households in the last two years.

Hodges’ pay package could see him collect up to £3.8m if he hits long-term performance targets.

Centrica chief executive Iain Conn, who joined at the start of the year, said: ‘He brings substantial experience of running a major UK customerfacing business and has a strong track record in improving customer service, increasing performance and driving growth through innovation. British Gas will benefit significantly from these capabilities. Mark is ideally suited to lead the business in this next phase.’

He will join in June, less than a month after the election that could see Ed Miliband become Prime Minister. The Labour leader has pledged to freeze power bills if he wins power.

Hodges’ base salary will be £625,000, but he can collect up to twice that in bonuses and a further £1.9m in long-term share awards after three years if he hits stretching performance targets.

He will take over from Ian Peters, who has been in the role on an interim basis since previous boss Chris Weston left.

Peters will step down from the company’s management committee at the end of the year but is expected to say on in a paid consulting role.

Until last year Hodges was chief executive of specialist insurance brokerage Towergate Insurance, though he quit unexpectedly in October.

A month later the company revealed it was struggling to remain afloat, and it was eventually sold to its creditors in February.