British Gas drops late payment penalty
(08 March 2007)

British Gas has announced that it is to scrap plans to introduce a £5 late payment penalty after protests from its customers.

The company had announced the charge, which was to be levied on late payments after March 1st, in January, provoking criticism from customers and consumer groups.

Consumer group Energywatch had labelled the charge "ridiculous" and "unfair", while regulators Ofgem told customers that they should switch to another provider.

Phil Bentley, the new managing director of British Gas, said the u-turn came about after the company listened to the views of customers.

He added this did not mean British Gas was softening its stance on late payment, stating that it cost the company £20 million each year and promising to "be more rigorous than ever" in pursuit of unpaid bills.

Andrew Gallagher, head of company performance at Energywatch, said the decision was a "victory for common sense".