British Gas fined over complaints - UK News - MSN News UK Energy giant British Gas has been fined £2.5 million by the energy watchdog for failing to deal with complaints correctly. British Gas, which serves nearly half of the UK's households, failed to reopen cases when customers indicated their complaint had not been resolved, Ofgem found. The regulator also said the company failed to provide key information about the energy ombudsman to customers when complaints were not resolved and failed to put in place a process to deal with businesses with 10 employees or fewer. Ofgem said British Gas breached regulations setting standards for complaint handling which came into effect in October 2008. Sarah Harrison, Ofgem's senior partner for sustainable development, said: "Today's finding highlights basic failures in British Gas's customer service, particularly in dealing with some of its small business customers, and shows Ofgem's commitment to use its powers to ensure suppliers treat customers fairly and transparently. We warned the industry in March that we would be backing up our plans to reform the retail market with a tough approach to enforcement." British Gas said Ofgem's finding was "totally disproportionate" but did admit it failed on the issue of dealing with so-called micro-businesses. A British Gas spokesman said: "Specifically for our micro-business customers, we acknowledge our service fell short of what they should expect from British Gas, for which we apologise. We knew we had an issue here which is why we flagged it to Ofgem. After a £4 million investment, we are now confident we meet all of our regulatory requirements."