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Energy firms 'avoiding tax'

Power giants are using a legal loophole to avoid paying millions of pounds worth of tax, The Independent on Sunday has revealed. Scotia Gas, UK Power Networks and Electricity Northwest have reportedly saved £140 million between them in such deals.

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British Gas 'boosting profits with old customer credit'

The whistleblower said British Gas has taken £20m from customers with outstanding credit on their accounts. Credit: Rui Vieira/PA Wire

A whistleblower at British Gas has claimed the energy giant boosts its own profits by using millions of pounds of credit built up by former customers.

The provider has taken £20m from customers with outstanding credit over the past year, the unnamed whistleblower told The Observer.

The credit - built up when customers use less energy than they are originally billed for - was taken by British Gas when private and business users were overcharged on initial estimates and then switched to another supplier, with outstanding money still owed to them.

The whistleblower claims British Gas established a special team to speed up what is a legal, but widely frowned upon, transfer of funds.

British Gas said it makes "every effort" to track down former customers to return money to them, but said it is unable to locate all those who have left.

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