Ofgem secures £7m compensation package for energy customers
By Iain Gilbert
Date: Friday 09 May 2025
(Sharecast News) - Ofgem said on Friday that ten energy suppliers have paid more than 34,000 customers a total of £7.0m in compensation and refunds after overcharging some customers in error.
The issue, uncovered in a compliance review by Ofgem, impacted customers with 'Restricted Meter Infrastructure' between January 2019 and September 2024.
Energy suppliers have been allowed to apply multiple standing charges for homes with multiple electricity meters for some time. However, this also meant that certain customers were erroneously charged more than was allowed under the price cap when combined with unit rates.
After identifying the issue and investigating, Ofgem said the suppliers in question had "swiftly rectified the issue" and agreed to pay a total of £7.0m in refunds and compensation to those affected - incluing £5.6m in refunds and almost £1.4m in goodwill payments.
Charlotte Friel, director of retail pricing and systems at Ofgem, said: "Our duty is to protect energy consumers, and we set the price cap for that very reason so customers don't pay a higher amount for their energy than they should. We expect all suppliers to have robust processes in place so they can bill their customers accurately. While it's clear that on this occasion errors were made, thankfully, the issues were promptly resolved, and customers are being refunded.
"Today's outcome serves as a reminder to all energy suppliers that they must implement the price cap properly and do their due diligence. It also shows that, where appropriate, Ofgem is prepared to work with suppliers that fail to comply with our rules."
Ofgem stated the suppliers in question were E.ON Next, Ecotricity, EDF Energy, Octopus Energy, Outfox the Market, OVO Energy, Rebel Energy, So Energy, Tru Energy and Utility Warehouse.
Reporting by Iain Gilbert at Sharecast.com
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