British Gas fined over complaints

By Sarah Tawton

British Gas has been ordered to pay a fine of £2.5 million for the way it handles customer complaints.

Energy watchdog Ofgem said the firm had breached rules for dealing with complaints which came into force in October 2008.

Customers who told the energy provider that their complaints had not been resolved found that their cases were not reopened, Ofgem said.

The firm also failed to give these customers important information about Ofgem, the regulator said.

British Gas provides gas and electricity to almost half of all households in the UK.

Ofgem's senior partner for sustainable development Sarah Harrison said: "We warned the industry in March that we would be backing up our plans to reform the retail market with a tough approach to enforcement."

A British Gas spokesman said: "We knew we had an issue here which is why we flagged it to Ofgem. After a £4 million investment, we are now confident we meet all of our regulatory requirements."