Sectoral case:
The Authority has confirmed its decision to impose a financial penalty of £800,000 on British Gas following an investigation into the company’s compliance with Standard Licence Conditions 7A and 14 of its electricity and gas supply licences with respect to non-domestic customer transfer blocking and renewals.
• SLC 14.1 prohibits licensees from domestic and non-domestic customer transfer blocking ("objections") except in the circumstances set out in SLC 14.2 in relation to non-domestic customers;
• SLC 14.3 requires a licensee who makes an objection, to give a notice to that customer stating that a request to prevent a transfer has taken place, the grounds for that request and how that customer may dispute or resolve such grounds;
• SLC 7A.13 prohibits a licensee from extending the duration of a micro-business’ fixed-term contract where the micro-business sends a notification in writing in order to prevent the extension, before a specified date in the contract.
These provisions are very important as they limit a supplier’s ability to block non-domestic consumers from switching and provide significant regulatory protection to micro-businesses. Switching fairly and easily is central to a well-functioning market and helps facilitate competition to ensure good outcomes for consumers.
In deciding the level of penalty the Authority paid particular regard to the fact that BG agreed to pay redress in the sum of £3,200,000 for the purpose of providing energy efficiency measures to micro-business consumers.
The penalty of £800,000 was to be made by British Gas by 1 July 2014. British Gas missed this deadline and made payment on 23 July 2014. British Gas paid an additional sum of £3,857.53 in interest payments to reflect the late payment of the penalty.