Ofgem has launched an investigation into the switching terms of British Gas.
The regulator will examine whether the Big Six supplier breached licence conditions relating to its obligations to customers who switch to different energy companies.
It includes the requirement to waive termination fees.
Ofgem’s licence conditions state suppliers should not charge termination fees for any switch that takes place within the 49-day switching period before the expiry of a fixed-term contract.
The probe follows concerns raised by consumer affairs site MoneySavingExpert, which claims customers were wrongly told they would have to pay up to £60 to switch towards the end of their contract.
It had sent a formal letter of complaint to Ofgem about the issue in March, along with a dossier of evidence showing how customers had been misinformed.
An Ofgem spokesperson said: “Energy suppliers are obliged to waive any termination fees for domestic customers wishing to switch supplier in the period of 49 days before their fixed deal comes to an end. We have reviewed the evidence received to date after MoneySavingExpert raised this issue and will be conducting a thorough investigation to establish whether British Gas failed to comply with the conditions of its licence.”
The regulator added the opening of the investigation “does not imply that we have made any findings about non-compliance”.
British Gas said it will co-operate fully with Ofgem to address the issues.