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British Gas

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British Gas Trading Limited
Company typeLimited company (subsidiary of Centrica)
IndustryUtilities
Predecessor
FoundedFebruary 1997 (as a subsidiary of Centrica)
HeadquartersStaines-upon-Thames, England, United Kingdom[1]
Area served
United Kingdom
Key people
Chris O'Shea
(Chief Executive, Centrica Consumer)
Matthew Bateman
(Managing Director, UK Home)
ProductsGas
Electricity
Boilers and central heating
Plumbing and drains
Renewable energy
Home appliance services
ParentHM Government (1812–1986)
Centrica (1997–present)
Websitewww.britishgas.co.uk

British Gas (trading as Scottish Gas in Scotland[2][3][4]) is an energy and home services provider in the United Kingdom. It is the trading name of British Gas Services Limited and British Gas New Heating Limited, both subsidiaries of Centrica.[5] Serving around ten million homes in the United Kingdom, British Gas was the largest energy supplier in the country until 2024 when it was overtaken by Octopus Energy.[6] It remains the largest gas supplier. It is considered one of the Big Six dominating the gas and electricity market in the United Kingdom.[7]

History

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1812–1948

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Further information: Gas Light and Coke Company

The Gas Light and Coke Company was the first public utility company in the world. It was founded by Frederick Albert Winsor and incorporated by royal charter on 30 April 1812 under the seal of King George III.[8]

It continued to thrive for the next 136 years, expanding into domestic services whilst absorbing many smaller companies including the Aldgate Gas Light and Coke Company (1819), the City of London Gas Light and Coke Company (1870), the Equitable Gas Light Company (1871), the Great Central Gas Consumer's Company (1870), Victoria Docks Gas Company (1871), Western Gas Light Company (1873), Imperial Gas Light and Coke Company (1876), Independent Gas Light and Coke Company (1876), the London Gas Light Company (1883), Richmond Gas Company (1925), Brentford Gas Company (1926), Pinner Gas Company (1930) and Southend-on-Sea and District Gas Company (1932).[9]

On 1 May 1949, the GLCC became the major part of the new North Thames Gas Board, one of Britain's twelve regional gas boards[8] after the passing of the Gas Act 1948 by Clement Attlee's post-war Labour government.

1948–1973

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Further information: Gas board and Gas Act 1948

In the beginning of the 1900s, the gas market in the United Kingdom was mainly run by county councils and small private firms. At this time the use of a flammable gas (often known as "town gas") piped to houses as a fuel was still being marketed to consumers, by such means as the National Gas Congress and Exhibition in 1913. The gas used in the 19th and early 20th centuries was coal gas, but in the period of 1967–77, British domestic coal gas supplies were replaced by natural gas.

Commemorative plaque in Great Peter Street

In 1948, Clement Attlee's Labour government reshaped the gas industry, bringing in the Gas Act 1948. The act (on the vesting date of 1 April 1949) nationalised the gas industry in the United Kingdom and 1,062 privately owned and municipal gas companies were merged into twelve area gas boards, each a separate body with its own management structure.

The twelve gas boards were: Eastern, East Midlands, Northern, North Eastern, North Thames, North West, Scottish, Southern, South Eastern, South West, Wales, and West Midlands. Each area board was divided into geographical groups or divisions which were often further divided into smaller districts. These boards simply became known as the "gas board", a term still sometimes used when referring to British Gas.[citation needed]

In addition, the Gas Act established the Gas Council, its constitution was such that control lay effectively with the area boards. The council consisted of a chairman and deputy chairman, both appointed by the minister, and the chairmen of each of the twelve area boards. The council served as a channel of communication with the minister; undertook labour negotiations; undertook research; and acted as spokesperson for the gas industry generally.[10]

The Gas Act 1965 shifted the balance of power to the centre: it put the Gas Council on the same footing as the area boards, with the powers to borrow up to £900 million, to manufacture or acquire gas and to supply gas in bulk to any area board.[11] In May 1968, the Gas Council moved to large new offices at 59 Bryanston Street, Marble Arch, London.

1973–1986

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In the beginning of the 1970s, the gas industry was again restructured after the Gas Act 1972 was passed. The act merged all the area boards, created the British Gas Corporation and abolished the Gas Council.[12]

From its inception, the corporation was responsible for development and maintenance of the supply of gas to Great Britain, in addition to satisfying reasonable demand for gas throughout the country. Its leadership, like that of the area boards, was appointed and supervised by the Secretary of State for Trade and Industry until 1974, when those powers were vested in the newly created position of Secretary of State for Energy.

1986–1997

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The Conservative Government, led by Prime Minister Margaret Thatcher introduced the Gas Act 1986, which led to the privatisation of the company, and on 8 December 1986, its shares floated on the London stock market.[13] To encourage individuals to become shareholders, the offer was intensely advertised with the "If you see Sid...Tell him!" campaign.[14] The privatisation was criticised by Baron Gray of Contin who said it broke a key part of the Conservative's 1983 manifesto that the party would not simply replace one monopoly with another; at the time, British Gas was the only organisation that could supply gas to anyone in the country.[14]

1997–2020

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Further information: Centrica
A newly designed van of British Gas (2013)

In February 1997, eleven years after it had been privatised, British Gas plc demerged to become the entirely separate BG Group and the Gas Sales and Gas Trading, Services and Retail businesses.

The Gas Sales and Gas Trading and Services and Retail businesses, together with the gas production business of the North and South Morecambe gas fields, were transferred to Centrica, which continues to own and operate the British Gas retail brand.[15]

British Gas acquired Dyno-Rod in October 2004.[16][17] In April 2016, it was announced that 224,000 residential customers had left the company, citing customers coming to the end of their fixed deals and then moving on to other suppliers as the main reason for this loss.[18]

Polyethylene plastic main being placed in a trench.

In the same month (April 2016) British Gas also announced it would be closing a call centre and office in Oldbury (West Midlands), with a loss of approximately 680 jobs.[19] In May 2018, Centrica announced that British Gas had lost 100,000 customers since the start of the year.[20] However, the parent company was still likely to hit its targets of 2018, and pay dividends of 12p per share.

British Gas was led by chief executive, Sarwjit Sambhi, who oversees a business that provides energy and services to around ten million homes, and employs over 28,000 staff based across the United Kingdom.[21] A further seven hundred job cuts in the United Kingdom were announced by Centrica in July 2019, amid growing marketplace challenges, which include the loss of 742,000 customers in 2018, and the government's price cap.[22]

Vehicle fleet

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In May 2007, British Gas signed a deal which saw 1,000 Volkswagen Caddy vans being supplied to the firm, which were fitted with a bespoke racking system and a speed limiter, designed by Siemens.[23] The deal was renewed in September 2015.

In 2020 British Gas announced they would be introducing an all electric fleet of vans, with all diesel vehicles to be replaced by 2025. The company are currently replacing diesel vehicles with the Vauxhall Vivaro-e.

2020s

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In April 2021, British Gas changed the contractual terms and conditions for thousands of its workers. Those who did not accept the changes by midday on 14 April 2021, were told to leave the firm. This resulted in a public outcry over the treatment of long-time workers, in particular over social media and with support from workers' unions and the opposition Labour Party.[24] In response, British Gas workers went on strike between January and June 2021, when workers accepted a new pay deal.[25]

In 2023, British Gas came under criticism after a series of media stories highlighting their poor customer service [26] and practice of breaking into homes to force people onto pre-payment meters.[27] After an internal enquiry, they announced they would no longer use the third-party contractor responsible.[28]

In a 2023 review, the UK government regulator for the energy sector, Ofgem, found that British Gas had 'moderate weaknesses' with their customer service processes, alongside the majority of suppliers.[29] They are described as the "worst firm to be moved to" by MoneySavingExpert.com after a 2022 survey.[30][non-primary source needed]

Advertising, sponsorship and marketing

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British Gas has actively been involved in sports sponsorship since the early 2000s. This includes a six-year, £15 million deal with British Swimming between 2009 and 2015, encompassing the London 2012 Olympics.[31] From 2006 to 2009, it sponsored the Southern Football League of England.[32]

The company's extensive television advertising has featured many high-profile individuals, and in the beginning of the 1990s, one advertisement included Cheryl Tweedy as a small child, more than ten years before the beginning of her pop music career.[33]

In November 2012, the Information Commissioner's Office publicly listed British Gas as one of a number of companies that it had concerns about due to complaints of unsolicited marketing telephone calls. In response, British Gas said that "We uphold the highest standards when contacting people in their homes, and only use contact information if we have express permission to do so".[34]

In July 2014, regulator Ofgem reached an agreement with British Gas for the company to pay £1 million in compensation to hundreds of people, who had been advised to switch from other suppliers to British Gas by British Gas advisers using exaggerated claims.[35] On 20 September 2015, British Gas launched an advert, including their new mascot, Wilbur the Penguin.

In 2023 British Gas began a five-year partnership with the British Olympic Association and the British Paralympic Association.[36]

Distribution network operators

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British Gas is a supplier of both gas and electricity for homes across the country. However the infrastructure (pipes) which delivers the gas to consumers is owned and maintained by other companies. Similarly, the network of towers and cables that distributes their electricity is maintained by distribution network operators (DNOs) which vary from region to region, and not by British Gas. So, as with other electricity suppliers, if there is an electrical power outage, it is necessary to contact the appropriate DNO, rather than British Gas or your other electricity supplier.[37]

See also

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References

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  1. ^ "See all our locations in the UK and Republic of Ireland" (PDF). Centrica. 29 June 2015. Archived from the original (PDF) on 1 March 2016. Retrieved 18 February 2016. 3. British Gas Head office, The Causeway, Staines
  2. ^ "Scottish Gas raises prices again". 27 July 2006. Retrieved 19 December 2021.
  3. ^ "Scottish Gas - Intellectual Property Office". GOV.uk. Archived from the original on 19 December 2021. Retrieved 19 December 2021.
  4. ^ "ScottishPower, SSE, Scottish Gas, Outfox & Octopus". The Herald. 25 January 2021. Archived from the original on 25 January 2021. Retrieved 19 December 2021.
  5. ^ "British Gas Legal Information", Legal information - British Gas, retrieved 2 March 2012
  6. ^ Twidale, Susanna (29 April 2024). "Octopus Energy becomes Britain's largest home electricity supplier". Reuters. Retrieved 19 September 2024.
  7. ^ "Millions face rise in energy bills", Money: Business news, money advice, personal finance, property news, 11 October 2012, archived from the original on 14 October 2012, retrieved 11 October 2012
  8. ^ a b "Gas, Light and Coke Company". Archives in the M25 area. AIM25. Archived from the original on 21 January 2016. Retrieved 24 August 2012.
  9. ^ "NORTH THAMES GAS PREDECESSOR". AIM25 Archives in London and the M25 area. Retrieved 10 August 2011.
  10. ^ Williams, Trevor I. (1981). A History of the British Gas Industry. Oxford University press. pp. 116–7.
  11. ^ Williams, Trevor I. (1981). A History of the British Gas Industry. Oxford: Oxford University Press. p. 232.
  12. ^ "Gas Act 1972", Gas Act 1972, 17 July 2012, retrieved 17 July 2012
  13. ^ "Tell Sid that British Gas shares are now worth a packet". The Guardian. 12 November 2011. Retrieved 27 July 2021.
  14. ^ a b "British Gas Privatisation and the Search for Sid". Financial Times. Retrieved 27 July 2021.
  15. ^ "Demerger". 17 July 2012. Archived from the original on 3 February 2014. Retrieved 1 August 2012.
  16. ^ "Centrica acquires Dyno-Rod". Archived from the original on 19 January 2013.
  17. ^ Collins, Martyn (18 September 2015). "British Gas goes for another 8,000 Caddy vans". businessvans.co.uk. Retrieved 30 June 2017.
  18. ^ "British Gas loses 224,000 customers, owner Centrica says". 18 April 2016. Retrieved 18 April 2016.
  19. ^ "British Gas to axe 680 jobs". BBC News. 20 April 2016.
  20. ^ "British Gas loses 100,000 customer accounts since start of year". The Guardian. 14 May 2018.
  21. ^ "British Gas | Biographies". www.britishgas.co.uk. Retrieved 1 April 2019.
  22. ^ Johnson, Helen (20 June 2019). "British Gas job losses: owner Centrica to cut 700 UK jobs this summer amid 'growing challenges'". i (newspaper). Retrieved 24 July 2019.
  23. ^ Young, Tristan (21 August 2007). "VW's British Gas deal kicks off". businesscar.co.uk. Retrieved 21 June 2017.
  24. ^ Ambrose, Jillian (14 April 2021). "Hundreds of British Gas engineers to lose jobs in 'fire and rehire' scheme". The Guardian. Retrieved 16 April 2021.
  25. ^ Thicknesse, Edward (20 July 2021). "GMB calls off British Gas strike after 44 days". CityAM. Retrieved 19 January 2024.
  26. ^ Haynes, Tom (15 January 2023). "How British Gas let down a nation". The Telegraph. ISSN 0307-1235. Retrieved 1 February 2023.
  27. ^ Bosset, Paul Morgan-Bentley, Head of Investigations I. Video by Kasia Sobocinska and Stephanie. "Exposed: How British Gas debt agents break into homes of vulnerable". The Times. ISSN 0140-0460. Retrieved 1 February 2023.{{cite news}}: CS1 maint: multiple names: authors list (link)
  28. ^ "British Gas sacks debt collectors who broke into homes of vulnerable". The Times. Retrieved 7 May 2023.
  29. ^ "Ofgem completes review of suppliers' customer service and complaints handling". Ofgem. 2 February 2023. Retrieved 7 May 2023.
  30. ^ "British Gas is the worst firm to be moved to if your energy firm goes bust, MSE survey of 12,000 people shows". Retrieved 7 May 2023.
  31. ^ "British Gas to sponsor British swimming team – More Than Games". Archived from the original on 24 March 2009. Retrieved 1 April 2012.
  32. ^ "British Gas Sponsor Southern League". Kentish Football. Archived from the original on 20 July 2013. Retrieved 1 April 2012.
  33. ^ "Before They Were Famous: Celebs in Ads (VIDEO)". HuffPost.
  34. ^ Core, Kevin (16 November 2012), "Commissioner names firms over 'nuisance' marketing calls", BBC News, retrieved 8 February 2013
  35. ^ "BG pays compensation for mis-sold contracts". Britain News.Net. Archived from the original on 14 July 2014. Retrieved 5 July 2014.
  36. ^ "British Gas joins Team GB and ParalympicsGB ahead of Paris 2024". teamgb.com. Retrieved 20 December 2023.
  37. ^ "The GB electricity distribution network". 18 June 2013. Retrieved 14 July 2014.

Further reading

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