British Gas fined for keeping customers on hold

10 January 2007

British Gas has been fined by Icstis, the premium rate phone line regulator, for deliberately keeping its Click Energy customers on hold and not properly informing them of the fact that the calls would cost 75 pence per minute.

"It is unacceptable that Click Energy customers have been forced to pay 75 pence per minute when they need more information or have a query with their tariff," blasted Tim Wolfenden, product strategy manager at the price comparison and switching website uSwitch.com.

"This is compounded by the fact that this same group of customers yesterday saw energy prices increase 12.5% for gas and 9.5% for electricity after British Gas lifted a price freeze which was enforced in September 2006."

Icstis also criticised Cable & Wireless, the provider of the premium rate service, for failing to make British Gas aware of its responsibilities around the code of practice on premium rate telephone services.

If consumers are to be charged above a normal rate for a phone call, companies are duty bound to inform the caller of the cost before placing them on hold.

In addition to this, British Gas call-staff were found to be giving incorrect information when they were asked about the cost of the calls, with answers ranging from three pence a minute to 60 pence.

"Based on these findings it is not surprising that British Gas came last for overall satisfaction in uSwitch.com's Energy Customer Satisfaction Report with more than 56% of customers not satisfied," continued Mr Wolfenden.

"Thankfully, consumers are increasingly aware of British Gas' shortfalls and are switching away in droves. It appears the dominant energy supplier is losing traction as its market share slips to 50% after losing around a million customer accounts in 2006."

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