Steven Hawkes
2 for 1 tickets to Singin' In The Rain, this coming Monday. Book now
Energy watchdogs have attacked British Gas after discovering that 45,000 of the group’s customers have been told that their direct debit payments were cancelled by mistake in February.
Homeowners affected by the £12 million billing bungle will now pay an extra four months of gas and electricity bills over the next year.
The error comes just weeks after Phil Bentley, British Gas managing director, vowed to cut complaints caused by a new £400 million billing system.
In a letter sent to the 45,000 customers, British Gas hopes that a new payment plan will be sent out in time for direct debits to resume by the end of this month.
Lois Hedgpeth, customer services director, said: “You may have noticed that over the past few months we have not collected your monthly direct debit payments and more recently you may have received a reminder notice for these missing payments.
“I apologise for this mistake, which was caused by a system error. Our specialist team is working now to resolve this. We appreciate your patience in this matter and I will be in touch again soon.” Given average annual direct debit bills of £875, many of the affected customers owe nearly £300 in back payments.
Graham Kerr, a spokesman for Energywatch, the independent gas and electricity consumer watchdog, said that the mistake would cause a major headache for families who plan their budget around regular bills. “Yet again British Gas is found wanting when it comes to delivering basic customer services,” he said.
It is the latest in a series of high-profile gaffes by Centrica-owned British Gas, which supplies 16 million customers.
In April, Mr Bentley was forced to apologise for “teething problems” with the billing system after Energywatch revealed that complaints about the group had trebled to a record 21,427 in one year.
It claimed many customers were being sent bills for amounts far higher than their actual usage, while in some cases British Gas was still collecting direct debit payments from customers that had switched to a rival supplier.
Mr Bentley joined British Gas at the beginning of March and one of his first acts was to scrap a controversial £5 late payment charge.
He told The Times last month that his top priority was “great customer service”. He said many complaints were being caused by “kinks” in the billing system.
A British Gas spokesman yesterday blamed mechnical failures at a printing department for the latest setback.
This meant the 45,000 customers were not informed of a change being made to the amount they pay within a ten-day deadline in February. It had taken until May to spot that this had frozen their bills.
The spokesman said: “We have admitted to teething problems and are resolving issues like this. No one is financially worse off and we are allowing customers to spread the payments over 12 months.”
But Mr Kerr said: “This latest system foul-up will do nothing to improve the service reputation of a company that claims it is on the mend.”
Why the customers flare up
August 2006 British Gas fails to notify 400,000 direct debit customers their payments have increased
October 2006 A pensioner told to spend £5,000 on a heating system by British Gas accepts compensation after a plumber fixes the problem for £231
November 2006 The supplier sparks anger by promising business customers “red carpet” service
December 2006 British Gas owner Centrica announces 1,310 job cuts. Staff processing household bills are most affected
March 2007 British Gas scraps a £5 late payment charge after criticism
April 2007 Energywatch says British Gas is in “meltdown” after complaints treble in one year to 21,427
May 2007 British Gas threatens a woman with the bailiffs after sending her a bill for the home she has not lived in for five months
Enjoy screenings of all the classic films you love, plus take advantage of two-for-one tickets
Have you ever dreamed of owning your own racehorse or a beautiful painting?
Enjoy comfort, safety, space and great design. Plus enter our great competition
Times Online's new TV show helps you make the right decisions for your pet
Are you California dreaming? Explore the wonders of the Golden State. Also enter our fantastic competition
Do you have what it takes to be a Times photographer?
Your brain is capable of more than you might think...
Find out to make the most of your money with our wealth management guides
Need help with your property? We have an entire how to guide - buying, selling, letting, moving, to help you
We are seeking entries for the inaugural Sunday Times Best Green Companies Awards
Enjoy some wonderful inspiring wildlife moments
An interactive preview of the brand new For Your Eyes Only exhibition

Love Sudoku? Play our brand new interactive game: with added functionality and daily prizes

Are you irritable when you return from work? Drained of emotion? You could be suffering from boreout
Prepare for some shock and awe, petrol lovers. Despite the greens trying to wipe it out, the car is about to offer us the most exciting year ever
We've trawled the brochures and websites to find this summer’s best holidays for every taste and budget

Overseas contacts and local business information

Find a course, arrange a game and save money
2007/07
£57,500
South East England
2007/07
£40,995
South East England
2006/06
£41,995
South East England
Great car insurance deals online
£40-55k+benefits+uncapped commission
Morgan Keating
South East
Up to £30,000
GLE
London
£
c£75,000 + executive benefits
Morgan Keating
London and South
Unpaid with travel expenses
Network Rail
Globrix, the property search engine
Visit Times Online Property for homes for sale or rent
Residential development site with planning permission
£1,500,000
Mortgages, bank accounts & money transfers to help you buy abroad
Dinarobin Hotel Golf & Spa 7 nights
From £1830 per person – saving £530.
Walking & multi-activity holidays in Cauterets. Stylish self-catering apartments.
From 350€ for 7 nights.
SAVE 25% on Sandals Luxury Resorts
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Search globrix.com to buy or rent UK property.
© Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
I moved to property feb 2006. Received bills for 4 different amounts & accounts. Took £79 off my DC and put it in gas account I dont have gas. Charged me £10.00 letter & £14.00 telemessage. I have been harassed for over 2yrs and charged £271 for a visit. They still owe me £79 from 9/06. I am now ill
Maxine, Ashtead, surrey
I've just received a £300 has bill for a property I moved out of almost 11 months ago. Despite it taking them 10 months to send me the bill, and the fact they can offer no explanation other than a 'billing issue' meaning a 'block' was put on the account, I am expected to pay it within 7 days or face charges (I could pay in three installments but can't even fo that by direct debit because I no longer have an account with them and so would have to take a payment card into a local co-op every month to do that.) They clearly have no concept of customer service (I'm so glad I moved to Scottish Power when we moved house). The matter was made far worse by the rude, unhelpful robots at the complaints department who are programmed to give only one response (it's not our fault - I'm sorry but there's no more advice I can give you). £517m profits and 15% price hikes are completely unjustified for a company with such poor quality service and unhelpful unreasonable staff.
Ruth , Sutton,
In Feb 2007 British gas sent a bill adressed to someone we had never heard of at our address. We contacted them and after an number of conversations were told to ignore the bill and to ignore any future bills sent to this person. We then received our normal bill which we paid, and almost immediately after another bill welcoming us to our new dress (well we had only lived here for 21 years). My wife queried this and we were told not to pay the bill as we were supposed to be billed quarterly and that the sum would be added to our next bill, we received our next bill which we paid and shortly aftwards received a threatening letter from a firm of debt collectors employed by British Gas. We informed British of this situation 3 times by phone and twice by email,we received an apology, have been told the debt collectors have been called off but are still plagued with threats of legal action. At present British gas are failing to give any answer whatsoever to this problem
Jerry Varmen, Poole, Dorset
I moved into a new property in March, transferred my existing account for gas supply with Southern Electric to the new property and paid ERG (incumbent supplier with previous occupier) for supply during transition. After a few weeks BG started sending me bills, threats to cut me off and now advise that legal action is being taken - and that my credit rating will be effected; not that 'The Occupier' at the property, for which they have the address wrong anyway, will care. This is a clear attempt to extort money from people - to harass and intimidate them into switching to British Gas and/or pay them money they don't owe. Quite unbelievable. All attempts on my part to stem the tide of threats have proved futile so far - I await the visit from the bailiff.
Ed Cole, Bath, AVON
My son bought a house over 2 years ago with a sealed off gas pipe, and no meter. On numerous occasions BG sent bills for gas despite him telephoning and writing to them several letters. They then sent a letter stating they were going to get the police to accompany them so they could enter the property to read the meter... there is no meter! After several attempts to ring BG he eventually got through to be told to ignore the letter and that there would be no more problems. This weekend he received a letter saying a warrant for £361 was being actioned for unpaid bills, and this could only be stopped by paying £80 immediately. He risks having his credit rating damaged by the ineptitude of British Gas, who are impossible to get hold of in under 30 minutes on the phone, do not keep their word, and cannot be trusted.
I have also had to adminster 3 executors estate myself and have had threatening letters from months after settling final bills.
David Adams, Stratford-upon Avon, Warwickshire
My experience with scottish /british gas is appauling!
I live in a small 2 bedroom flat, we hardly have on heating, we hardly live here but for gas and electric its £516!
We paid our bills on time then because we never received our bill we were hit with a "fee" that no staff member seems to be able to identify why but can see it on the account.
We are on monthly payments and they randomly request amounts outside our payment plan as well as moving money across my accounts and made one of our accounts go into debt!
Service is appauling! i hate british gas and now complaining to energy watch
shell, glasgow,
I had the same problem with the cancelled direct debit in February. A threatening letter of demand for payment for more than the amount due(Jan direct debit payment not included). I was moving away from the property in Leatherhead so the final account would resolve the situation.
However, I live overseas and 2 years ago requested British Gas to send correspondence and accounts to the BFPO address - other utilities managed this but British Gas never sent any accounts to my BFPO address.
I phoned on 27th February with details of the final meter reading the advisor asked if I no longer required gas at "Christ Church" my overseas address - they had details of the address. British Gas have not yet sent the final account to this address - I have not received a final account.I have written to the customer services at ADMAIL (I cannot access the 0845 tel overseas)I am not withholding payment. Letters of demand threatening legal action have been sent to Leatherhead. I am dissatisfied.
susan siddall, naples, italy
As the executor for my late father's estate I sold his property in Bucks on 30 March. I had no problems settling the accounts with any of the utilities - bar one, British Gas. As of today - 5 long distance phone calls with an average waiting time of 15 minutes from Denmark later - British Gas have still not been able to issued a final account based on the closing readings supplied. Instead they presented estimated accounts only and insisted on payment despite having all the details on five separate occasions. After refusing to pay the estimated account, I was then threatened with legal and admin charges of nearly £400. I finally paid the estimate out of sheer exasperation on 14 May and was told that British Gas would be sending a final account within 6-8 weeks.
If this is what Mr Bentley considers to be 'great customer service' then he can think again!
Never fear I will be joining the 40,000 + people on the Energywatch list looking for compensation. Robin Worrall, Copenhagen
Robin Worrall, Copenhagen, Denmark
I hope that Gazprom is taking notes.
Running on Empty, Gerrards Cross, Leafy Bucks
The billing system has no provision for people who want to pay early because of holidays.
We tried this, and no bill arrived ater 10 working days. We requested a copy, waited 10 working days - no bill.
We requested another copy, and received a RED one in two days. We paid using plastic (against our wishes) and a week later received a copy bill.
Not at all customer friendly.
Robert Marshall, Glasgow,