In an industry already beset with major image problems, companies hardly want to be seen ripping customers off. Unfortunately this is exactly what has happened with energy supplier Centrica (CNA). Regulator Ofgem has fined the group £2.65m after it found it had overcharged 94,211 customers, wrongly informed 2.5m that exit fees were chargeable and charged exit fees to 1,698.
Political pressure to reduce energy bills has weighed heavily on UK-listed energy suppliers. Indeed, in an effort to reform the market (and its image), Centrica last year unveiled a raft of proposals intended to make the market work better for consumers, including the introduction of a fixed-term default tariff and advocating removing the standard variable tariff.