Centrica (LON:CEN) Energy firm, British Gas is to pay £2.65m after industry regulator Ofgem found it overcharged customers.
As of 10.08 BST, Centrica share price stands at 144.00p, 1.44 per cent up,compared to the UK benchmark index which is 0.34 per cent down at 7591.69 points.
The energy watchdog said customers were overcharged by £782,450
Ofgem also stated that British Gas wrongly informed 2.5 million customers that exit fees were chargeable during the 49-day switching window which affected 1,698 fixed-deal customers. Anthony Pygram, director of conduct and enforcement at Ofgem, stated: "British Gas failed its customers who were coming to the end of their fixed contracts and switched supplier by unfairly penalising them and applying charges in error.
The company has now corrected terms and conditions for customers but the £2.65m penalty charge was issued by Ofgem today. A Centrica spokesman stated: “A system error led to a small proportion of customers being incorrectly charged. We’ve apologised to the customers affected. Those who were charged too much were promptly refunded as soon as we identified the issue and were paid an additional goodwill gesture.”