Exaggerated claims: British Gas exposed mis-selling deals

Ofgem said that British Gas made exaggerated claims to lure more customers to switch.

16:46 04 July 2014

Ofgem has said that British Gas, the country’s biggest energy supplier, made exaggerated claims and did not make accurate comparisons between suppliers’ deals to lure more customers to switch.

The cases of mis-selling deals involved British Gas staff working in Sainbury’s stores nationwide between 2011 and 2013.

Because of this, the company paid 4,300 customers an average of £130 compensation. Another 1,300 affected customers were not reached by the company so their compensation will go into a fund to help vulnerable customers. 

The total compensation bill is £566,000, with a further £434,000 being paid into the same fund as part of the £1m penalty.

Ian Peters, managing director of British Gas Residential, said: “We are very sorry and have ensured no customer will be out of pocket as a result.”

A spokeswoman for Sainsbury's said: "As you would expect, we have taken this very seriously and ensured British Gas compensated customers."

Meanwhile, Sarah Harrison of Ofgem said: "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.”