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Where does this money go?

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Where does this money go?

British Gas fined £2.5m for complaint handling
Quote
Ofgem ruled that the company had failed to re-open complaints when customers said they had not been resolved.

These and other fines are all well and good but what happens to the money once paid?
Does it go to fund ofgem or whatever, to the government's coffers or, even better a realy good cause (doubtful)?
Also, won't these companies simply recoup the fine by hiking prices a little further?

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9 REPLIES
Moderator
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Re: Where does this money go?

[Cynic Mode]
They probably do like large shops do regarding shoplifting and factor it into their prices
[/Cynic Mode]
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Re: Where does this money go?

Have to agree, I bet it's passed back to the customer in increased charges.
James
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Registered: 04-04-2007

Re: Where does this money go?

I think I remember when Bulldog were in all kinds of trouble for billing issues and I think Ofcom made them stop doing any form of advertising for a period.
If they did that with British Gas for say a year, I imagine that would hurt them more than £2.5m, but ultimately would still lead to the same thing, a hike in prices.
itsme
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Re: Where does this money go?

Might explain why I just had a phone call from my Utility provider which I'm in dispute with via the Ombudsman. They had ignore the recommendations of the Ombudsman, they are allowed 28 days, the recommendations then become a requirement and they are given another 28 days to comply. The 28 days ended last week. So is it just coincidence that I had a phone call this afternoon?
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Re: Where does this money go?

We basically all agree that these fines will eventually hit the consumer but what actually happens to the money?
Any ideas?

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Courage is resistance to fear, mastery of fear, not absence of fear - Mark Twain
He who feared he would not succeed sat still

matt_2k34
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Re: Where does this money go?

I would highly suspect it would go to the ombudsman.
Yep - will definitely be a price increase passed onto the consumer, Not that it matters because BG completely disregards its customers anyway.
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Community Veteran
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Re: Where does this money go?

The money goes to the government and not the ombudsman.
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Re: Where does this money go?

Agreed. The money goes into the Treasury.
pierre_pierre
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Re: Where does this money go?

Just been listening to an interview with a Midlands police dept that sells all unclaimed found property and criminals bits via eBay, up to cars and caravans.
All that money goes to central goverment and is then distributed back out, they might get some back but not all