BGB Ordered to Pay £5.6m

Bluebirdman_of_Alcathays

http://www.bbc.co.uk/news/business-26967438

One of the first things Stephen Beynon did upon taking over at BGB was abolish auto-renewing contracts (at significant cost to the business), a policy other business suppliers were quick to follow.

http://www.britishgas.co.uk/blog/articles/an-end-to-auto-rollover-business-energy-contracts

Looks like that wasn't enough to satisfy OFGEM, £5.6m for failing to notify 1200 SME's seems quite harsh but there we go. If OFGEM can finally sort out the appallingly regulated broker industry then I think we'd be getting somewhere.

tony222

As somebody who works in the commercial energy sector I would like to point out that BGB have been well known for doing this for at least the last ten years.
I have personally terminated hundreds of contracts within the "termination window" by recorded delivery letter only to have BGB object to the switch. When I phone and ask the reason why they ALWAYS say the same thing so I assume it's a script and therefore endorsed by management. "I'm very sorry but we didn't receive your termination letter" to which I reply "yes you did, you signed for it on (date) and I have a proof of delivery from Royal Mail online" they then reply "oh yes, we did get it, sorry, our computer system missed it, we will lift the objection today" Obvious and deliberate deceit.
How will BGB identify the thousands of business customers they have conned like this in order for them to compensate them financially? To do that they would have to have records of the false objections they raised as well as a database of customers they deliberately didn't send letters to informing them their contracts were ending. Not very likely, just empty words.
Why are Ofgem so painfully slow at addressing this type of practice? It took them years to address the issue of rollover contracts which is actually allied to the termination and objection problem for which BGB have been fined this time. Suppliers then took the credit by announcing that they were ending rollover contracts.
BGB said they were ending the practice then didn't. They still l roll contracts over for 12 months but no longer do it for 24 or 36 months as they used to regularly. I have a renewal offer from them in front of me dated 26/2/14 which says just that. "If we don't hear from you by (date) we'll automatically start your new plan" (they omit to add the words 'around 30% higher than market rates) That's a rollover.

Bluebirdman_of_Alcathays

The cancellation of rollover contracts was for new customers, existing customers would still be auto-renewed up until June 2014.

http://www.britishgas.co.uk/business/blog/british-gas-puts-an-end-to-auto-rollover-contracts-for-business-customers/

tony222

So after June BGB will take all customers off auto-renewed contracts or will they deem that customers who have previously been rolled over have accepted that they are ok with auto-renewal?


Call me cynical but let's wait and see. Their history (plus most other energy suppliers to be fair) hardly inspires confidence.


Ofgem similarly.

Bluebirdman_of_Alcathays

Apparently so. I think they will certainly tread carefully after todays announcement.

Now if we could get OFGEM to stipulate the breakdown of costs for business energy, including the x£/MWh brokers stick on the top, we could finally tip the scales towards the business consumer.