Centrica announces it will protect customers' credit balances and calls on Ofgem to make this an industry standard

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Centrica is committing to protect customers’ credit balances, so British Gas customers can always have comfort that the money they pay up front for their energy is properly protected and is used to buy energy and not for day-to-day activities.

As a responsible, sustainable supplier, Centrica protects customer deposits, and currently holds £294m in a separate bank account. The current UK energy market crisis has seen a large number of suppliers use customers’ credit to fund unsustainable commercial models and subsequently collapse, resulting in the disappearance of more than £500 million of UK consumers money.

The cost of energy company failures, including the lost consumer money, is added to the energy bills of every UK consumer and was responsible for 10% of Ofgem’s recent price increase.

Protecting customers credit balances is just one measure in a package of reforms Centrica is calling on Ofgem to make to ensure there is a stronger regulatory framework in place for energy suppliers, to prevent a repeat of the current energy crisis. Consumer trust in energy companies has been damaged by the recent crisis and reform is urgently needed to rebuild confidence in the sector.

Chris O’Shea, Chief Executive of Centrica said: “When customers pay up front for their energy, they are trusting their energy supplier to look after their money and would be appalled if they thought their money was being used to fund day to day business activities. I want our customers to know that their money is safe with us.

“The current energy crisis has shown just how important it is that energy companies are financially resilient. Had a robust regulatory framework been in place before the current crisis, many of the energy company failures we have seen in recent months could have been avoided.

“Protecting credit balances is a vital part of a resilient energy market and we believe urgent action is needed to protect customers’ credit balances from further supplier failures. We are taking steps today to ensure this is the case and we encourage Ofgem to do the same and make sure all energy suppliers follow suit and all customers to ask their energy suppliers how their money is being protected.”