British Gas might have overcharged customers for five years, OFGEM reveals


According to a new report by energy regulator OFGEM, between 2006 and 2011, British Gas failed to “round down” the calorific value, a charge that covers the heat or thermal energy in the gas a customer uses. For this reason, it apparently ended up overcharging quite a few of its customers, a news report on this matter reveals.

The problem is apparently related to the calorific value, a charge that covers the heat or thermal energy in the gas a customer uses. OFGEM required energy suppliers to to use just one decimal point for rounding down the value, but, in the aforementioned time frame, British Gas failed to do so, and used four decimal points when calculating the customers’ bills.

On the other hand, the energy regulator also admitted that the total impact on customers was “unclear”, since British Gas may have adjusted the main, unit price of gas and electricity to compensate for the higher charge on calorific value but it was impossible to say exactly to what degree.

On the other hand, British Gas claimed no wrongdoing, but even so, they’ve decided to pay £10m into a trust for vulnerable customers to settle this issue. Asked why it was paying this huge sum, a spokesman said the company simply wanted to resolve the row and move on, given the growing legal fees.

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