British Gas accused of using former customers’ credit to boost profits

British Gas is using millions of pounds of credit built up by former customers to boost its own profits, it was claimed.

The energy provider has taken £20 million from customers with outstanding credit on their accounts and poured it into its annual accounts over the last year, a newspaper said.

A whistleblower told the newspaper that profits from credit built up when customers use less energy than they are originally billed for were taken by British Gas when private and business users were overcharged on initial estimates and then changed to another supplier, with outstanding money still owed to them.

The company used to wait six years before using a customer’s credit for its own business, it was reported.

But the whistleblower claimed a special team was established to speed up the process so it can claim customers’ money quicker, and has taken years of built-up credit to boost its income.

British Gas said it makes “every effort” to track down former customers to return money to them, but said it is unable to locate all those who have left.

While the practice is legal, the company has drawn criticism for boosting its profits in such a way.