Susannah Streeter, chief investment strategist at Wealth Club, said: “This is a very hefty fine for British Gas and with the compensation due alongside, it is arguably the largest consumer redress package the UK energy sector has seen in recent years.
“It demonstrates how serious the breach of customer trust was, and how strongly Ofgem wants this to act as a deterrent to prevent a repeat in future.
“Centrica’s share price has fallen in early trade as investors count the cost for the wider business.
“However, now that a line has been drawn under the uncertainty surrounding the scale of the penalty, it should enable the company to begin moving on from the crisis.
“While the financial cost is significant, it is manageable given the group’s scale and profitability.
“However, the reputational damage will prove far more difficult to measure, especially as the issue has been thrust into the spotlight again and may well have repercussions for customer loyalty or potentially create new business challenges.
“The settlement also reflects a broader shift in regulatory expectations with companies increasingly being judged on how they treat vulnerable customers, and this should be a wake-up call for other industries as well.”
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