British Gas fined record £2.5m over complaints

British Gas was today fined a record £2.5 million by the energy industry regulator for failing to deal with customer complaints correctly.

Ofgem reprimanded the energy giant for not re-opening complaints when customers said they had not been resolved. The firm also failed to pass on key information about the help given by the energy ombudsman and had not put in proper procedures to deal with small businesses.

It is the largest ever fine issued against British Gas - which is tomorrow expected to post a £1.3 billion half-year profit, and is set to raise energy prices by up to 18 per cent from next month.

Consumer groups complained it was unfair the £2.5 million would go to the Treasury and not customers in reduced bills. Ofgem is also investigating npower and EDF Energy over handling of customer complaints. Scottish Power, Scottish and Southern Energy, EDF Energy and npower are under investigation for mis-selling. A British Gas spokesman said Ofgem's finding was disproportionate.