British Gas to pay out £1 million over misselling

LONDON (MarketWatch) -- British Gas will pay 1 million pounds ($1.7 million) in compensation for misselling energy deals to customers, a U.K. regulator said Friday. Staffers at British Gas "made exaggerated savings claims to prospective customers," between February 2011 and March 2013, said regulator Ofgem. The sales took place at grocer Sainsbury's and at a shopping mall in London. "In some cases, customers were told that they would save money by switching, but in fact they paid more with Sainsbury's Energy or British Gas than they would have paid if they had remained with their current supplier," said Ofgem. The package to be paid by British Gas will bring £566,000 in direct compensation to affected customers, and £434,000 for "vulnerable customers" through the British Gas Energy Trust. Shares of British Gas parent Centrica PLC (UK:CNA) shed 0.1% in London trade Friday.