Ofgem to examine British Gas over changing terms

British Gas, the greatest provider of energy to UK houses, is under examination by the market regulator over whether it has broken guidelines when consumers decide to change service providers.

Ofgem stated the examination will take a look at locations such as termination charges and the situations where these might be charged. Under the present guidelines, providers ought to not charge such costs if a consumer chooses to change energy provider throughout a 49-day “changing duration” before a fixed-term energy offer concerns an end, inning accordance with the regulator.

” The opening of this examination does not indicate that we have made any findings about non-compliance,” the regulator stated in a short declaration on Thursday.

British Gas stated: “British Gas will co-operate totally with Ofgem to deal with the problems raised in today’s statement.”

Ofgem released the examination following issues raised by the customer website Moneysaving Expert.

Ministers and customer groups are eager to motivate more clients to change to much better value energy offers but engagement in the market stays low, which has triggered restored require additional intervention in the market through cost limitations to safeguard those clients on the poorest tariffs.

A different statement previously today that Ofgem would take a look at presenting a cost cap for just “susceptible” consumers dissatisfied MPs and advocates who have been promoting limitations on the questionable “basic variable tariff”– the most typical rate that impacts two-thirds of UK homes.

Theresa May, prime minister, had guaranteed before the general election to knock ₤ 100 off energy expenses for 17 million families.

The brand-new “secure tariff” proposed by Ofgem on Monday will just safeguard 2.2 m consumers. More than 4m homes that use pre-payment meters are currently secured by a cap presented in April.