A British Gas customer experienced an unusual and prolonged difficulty after receiving an erroneous payment exceeding £38,000, highlighting challenges in reclaiming mistaken utility payments. The customer, who receives quarterly feed-in tariff (Fit) payments for solar energy exported to the grid, submitted a claim of £300 in May but was instead credited £38,611.59. The funds remained in the customer’s account for over seven weeks before being reclaimed by British Gas, despite repeated attempts to resolve the issue through customer service channels.

British Gas attributed the error to incorrect meter reading data entered by an agent. The company struggled to provide clear guidance on reclaiming the overpayment, and the customer expressed concern about the legal implications of holding the money while inquiries were ongoing. Ultimately, British Gas reversed the payment after two months and issued the correct Fit payment, though initially underestimated by £2. The customer was offered £500 compensation for the distress caused.

The incident echoes a similar case involving Yorkshire Water, where a payment of nearly £7,000 was mistakenly transferred and difficult to recover. These examples raise questions about utility companies’ ability to detect and rectify substantial payment errors quickly, particularly when such firms are otherwise efficient at pursuing customers for debts.

In a related case, another British Gas customer in Berkshire encountered problems following the disconnection of their gas supply after installing a heat pump. After receiving a final refund indicating a £430 credit in November 2024, the customer continued receiving estimated gas bills for a disconnected service. Disputing these bills proved laborious, and in early 2025, the customer’s credit rating was negatively impacted when British Gas reported six missed payments and an outstanding default amount of £833 to credit reference agencies.

After complaints, British Gas removed the missed payment records from the customer’s credit file but left the default flag intact, causing ongoing financial inconvenience. The company eventually acknowledged failing to update its system to reflect the meter disconnection and to correct the credit record in full. British Gas later canceled the £833 debt, substituted it with a nominal charge of 32p, refunded the amount, and paid £150 in goodwill compensation. The customer described this as insufficient considering the stress and hours spent resolving the issue.

Both cases illustrate ongoing systemic deficiencies in utility companies’ handling of payment errors and account closures, underscoring the difficulties customers face in correcting billing mistakes and protecting their credit ratings. British Gas’s responses have included compensation offers and refunds, but affected customers report protracted efforts and significant frustration before resolution.