Scottish Gas Board
| Company type | Subsidiary |
|---|---|
| Industry | Energy |
| Predecessor | British Gas Corporation |
| Founded | 1986 |
| Headquarters | United Kingdom |
Area served | United Kingdom |
Key people | Sarwjit Sambhi (CEO) |
| Products | Energy supply, home services |
| Owner | Centrica |
Number of employees | 28,000+ |
| Website | britishgas |
British Gas (known as Scottish Gas within Scotland) functions as a provider of energy and home services throughout the United Kingdom. It operates through several subsidiaries of Centrica, including British Gas Trading Limited, British Gas Services Limited, British Gas Services (Commercial) Limited, British Gas New Heating Limited, and British Gas Insurance Limited. With a customer base nearing ten million households across the UK, British Gas held the position of the largest electricity supplier until 2024, when it was surpassed by Octopus Energy. Despite this change, it continues to be the leading supplier of gas and remains a key member of the Big Six that dominate the UK’s gas and electricity sectors.
1812–1948
The Gas Light and Coke Company (GLCC), established by Frederick Albert Winsor and officially incorporated by royal charter on 30 April 1812 under King George III, holds the distinction of being the first public utility in the world. Over a span of 136 years, it grew through the acquisition of numerous smaller entities such as Aldgate Gas Light and Coke Company (1819), City of London Gas Light and Coke Company (1870), and Richmond Gas Company (1925), among others.
Following the enactment of the Gas Act 1948 by Clement Attlee’s post-war Labour government, on 1 May 1949, the GLCC was integrated into the newly formed North Thames Gas Board, one of twelve regional gas boards created at that time.
1948–1973
During the early 20th century in the UK, domestic gas supply was largely controlled by county councils and small private firms distributing flammable "town gas", predominantly derived from coal. The transition from coal gas to natural gas for British households occurred between 1967 and 1977.
The nationalisation of the UK gas industry under the Gas Act 1948 consolidated approximately 1,062 private and municipal companies into twelve regional area gas boards, each managed independently: Eastern, East Midlands, Northern, North Eastern, North Thames, North West, Scottish, Southern, South Eastern, South West, Wales, and West Midlands. These were further divided into groups based on geography and districts; collectively they became known colloquially as "the gas board," a term still associated with British Gas today.
This legislation also established the Gas Council, which consisted of a chairman and deputy appointed by the government minister along with chairmen from each area board. The council’s responsibilities included liaising with government bodies, negotiating with labour unions, overseeing research initiatives, and representing industry interests.
The Gas Act 1965 expanded central control by granting equal status to the Gas Council alongside area boards. It empowered the council to borrow up to £900 million, produce or procure gas supplies, and distribute it wholesale to any area board. In May 1968, the council moved its headquarters to 59 Bryanston Street in Marble Arch, London.
1973–1986
The early 1970s saw significant reorganisation within the gas sector under the Gas Act 1972, which consolidated all area boards into a single entity known as the British Gas Corporation while dissolving the Gas Council. This corporation was charged with overseeing gas supply development and maintenance throughout Great Britain. Initially, leadership appointments were made by the Secretary of State for Trade and Industry, but from 1974 onwards this responsibility transferred to the newly created Secretary of State for Energy.
1986–1997
During the tenure of Prime Minister Margaret Thatcher, the Conservative Government enacted the Gas Act 1986, which paved the way for the privatisation of British Gas. On 8 December 1986, British Gas shares were offered on the London Stock Exchange, supported by the promotional campaign "If you see Sid...Tell him!" aimed at encouraging individual investors. Despite privatisation, British Gas continued as the sole supplier across the UK, drawing criticism for effectively substituting a public monopoly with a private one.
1997–2020
In February 1997, British Gas plc underwent a demerger, resulting in two separate companies: BG Group and Centrica. Centrica assumed control of Gas Sales, Trading, Services, Retail operations, and gas production from the Morecambe fields. The British Gas retail brand remains under Centrica's management.
British Gas broadened its service portfolio by acquiring Dyno-Rod in October 2004. Nevertheless, by April 2016, it had experienced a decline of 224,000 residential customers, primarily due to contract expirations and competitive pressures. That same month included the shutdown of a call centre in Oldbury (West Midlands), leading to around 680 redundancies. In May 2018, Centrica reported an additional loss of 100,000 customers since January but expressed confidence in achieving its financial goals and continuing dividend payments.
Under CEO Sarwjit Sambhi’s leadership, British Gas serves roughly ten million households and employs over 28,000 individuals throughout the UK. Despite this scale, Centrica announced plans in July 2019 to cut another 700 jobs amid market difficulties, including a customer loss of 742,000 in 2018 and regulatory price caps.
Vehicle fleet
In May 2007, British Gas entered into an agreement for 1,000 Volkswagen Caddy vans equipped with custom racking systems and Siemens-engineered speed limiters. This contract was renewed in September 2015.
By 2020, British Gas revealed intentions to convert its entire van fleet to electric vehicles, aiming to phase out all diesel vans by 2025. The company has been replacing diesel models with the Vauxhall Vivaro-e.
2020s
In April 2021, British Gas modified employment contracts for thousands of staff members, requiring acceptance by 14 April or facing termination. This move sparked public criticism backed by unions and the opposition Labour Party. Between January and June 2021, British Gas employees staged strikes before agreeing to a new pay arrangement.
In 2023, British Gas was criticized for substandard customer service and forcibly installing pre-payment meters in customers’ homes. Following an internal review, the company discontinued using the third-party contractor responsible for these installations.
A 2023 Ofgem assessment highlighted 'moderate weaknesses' in British Gas’s customer service procedures—findings that were consistent with those of most energy suppliers. Additionally, a 2022 MoneySavingExpert.com survey ranked British Gas as the "worst firm to be moved to" following an energy provider failure.
Advertising, sponsorship and marketing
Since the early 2000s, British Gas has been actively involved in sports sponsorship. Notably, it entered into a six-year £15 million agreement with British Swimming from 2009 through 2015, which included support during the London 2012 Olympics. Between 2006 and 2009, it sponsored England’s Southern Football League. The company also backed the ITV1 programme Creature Comforts towards the end of 2005.
British Gas’s television commercials have featured prominent figures such as a young Cheryl Tweedy prior to her music career launch in the early 1990s.
In November 2012, the Information Commissioner's Office identified British Gas among firms receiving complaints related to unsolicited marketing calls. The company responded by affirming its commitment to high standards and stated that it only contacts customers who have provided explicit consent.
In July 2014, Ofgem secured a £1 million compensation deal from British Gas due to misleading practices during customer supplier transitions. On 20 September 2015, British Gas debuted a new advertisement featuring its mascot Wilbur the Penguin.
In 2023, British Gas initiated a five-year collaboration with both the British Olympic Association and British Paralympic Association to strengthen its presence within sports marketing initiatives.
Distribution network operators
While British Gas provides gas and electricity services across the country, the physical gas delivery infrastructure is owned and maintained by distinct entities. Similarly, regional distribution network operators (DNOs) oversee the electricity distribution networks rather than British Gas itself. Consequently, any electrical power interruptions should be reported directly to the appropriate DNO instead of British Gas or other energy suppliers.
British Gas runs six training facilities, referred to as British Gas Academies, situated in Rotherham, Thatcham, Dartford, Leicester, Stockport, and Glasgow.
See also
Further reading
- On nationalization 1945–1950: pp. 132–182
External links
- Catalogue of the British Gas operational research archives, preserved at the Modern Records Centre, University of Warwick
- Catalogue of the British Gas North West operational research reports, held at the Modern Records Centre, University of Warwick