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Energy company refunds £ 10m after overcharging

Some energy customers of the country’s largest energy supplier are seeking refunds and, in some cases, compensation payments after the supplier is found to be in breach of price protection rules.

Approximately 1 million customers have been overcharged by £ 7.2 million from 18 suppliers who did not comply with price protection regulations, according to energy regulator Ofgem.

Some suppliers self-reported their mistakes to Ofgem, who instructed others in the industry to self-assess their own practices. This clarified the scale of the problem and could have occurred between 2013 and 2020.

What are price protection rules?

Price protection is supposed to protect a customer’s price when the customer decides to switch suppliers or rates after the price increase.

According to Ofgem, the affected customers were categorized into three main categories.

  • Standard variable rate users who switched to another supplier but did not protect their variable rate prices during the switch
  • A user with a term rate that has moved to another supplier but the term rate was not protected during the switch
  • A user with a fixed-term rate who switched to a different rate with the same supplier, but the fixed-term rate was not protected during the switch.

Regulators have reported that there are various reasons for violating the rules, but most of the time it is due to not being properly prepared to ensure that protection is applied when customers decide to switch. ..

Supplier that broke the rules

It turns out that large and small suppliers do not meet these rules. They agreed to refund to all affected customers and, in some cases, to “pay goodwill,” or compensation, a total of £ 10.4m.

The table below details the various overcharged suppliers, the magnitude of the problem at that supplier, and the amount they are paying for relief.

supplier Number of affected customers Total damage Total dress dress package
Bristol Energy 12,617 £ 55,982.64 £ 56,552.64
British Gas / Centrica 141,415 £ 391,176.79 £ 1,269,095.47
E (gas and electricity) 20,870 £ 68,777.23 £ 72,772.93
E.On 28,126 £ 181,668.29 £ 238,884.29
EDF 79,083 £ 465,441.36 £ 516,191.55
Engie 9,061 £ 12,803.98 £ 21,218.74
ESB energy 1,961 £ 35,102.00 £ 49,787.00
Green Star Energy 79,083 £ 664,661.00 £ 808,351.00
npower 2,030 £ 24,207.69 £ 25,602.69
Octopus Energy 19,712 £ 59,902.15 £ 121,444.52
Orbit 723 £ 5,539.25 £ 7,081.12
OVO Energy 240,563 £ 2,001,196.45 £ 2,801,231.51
PFP Energy 5,347 £ 35,204.31 £ 50,929.31
Scottish power 157,236 £ 1,449,835.28 £ 1,967,465.28
shell 225,823 £ 1,001,203.40 £ 1,217,203.40
So energy 10,514 £ 59,723.56 £ 78,480.89
SSE 132,620 £ 713,973.86 £ 983,334.45
Utility warehouse 2,723 £ 62,783.92 £ 95,512.15

Anna Rossington, Interim Director of Retail at Ofgem, commented: In this case, Ofgem intervenes in the event of a customer overcharge and sends a strong message to all suppliers that they will not benefit from non-compliance.

“Also, if necessary, Ofgem did not comply with the rules, but self-reported the problem and showed that it was ready to work with suppliers who are willing to do things right for their customers. I will. “

Energy company refunds £ 10m after overcharging

Source link Energy company refunds £ 10m after overcharging

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