£10m refunds for 1m people ripped off by energy firms
ONE million households are to be refunded £10million after energy suppliers overcharged customers when they switched to better deals.
Energy watchdog Ofgem found suppliers, including the Big Six firms, ripped off customers over seven years by failing to follow price protection rules.
The rules are designed to safeguard a customer’s tariff price when they decide to either switch suppliers or deals after a price increase.
Several suppliers selfreported the issue to Ofgem, which prompted the regulator to ask all firms to assess their practices.
This then revealed failures among 18 suppliers between 2013 and 2020.
The firms have agreed to refund all those affected and, in some cases, make additional goodwill payments – to the tune of £10.4million in total. Included on the list of 18 are the Big Six – British Gas, EDF, E.ON UK, npower, Scottish Power and SSE. Ovo Energy is among those paying the most compensation – £2.8million. Scottish Power has a £2million bill, while British Gas is paying £1.3million and Shell is forking out £1.2million. The other firms on the list are Bristol Energy, E, Engie, ESB Energy, Green Star,
Octopus Energy, Orbit, PFP Energy, So Energy and Utility Warehouse.
Ofgem said it was not taking formal action against the suppliers, given their cooperation and agreement to compensate. But it warned firms could face formal action if they do not follow the price protection switching rules.
Anna Rossington, interim director of retail at Ofgem, said: “Customers should have confidence in switching and not be overcharged when doing so.
“This case sends a message to suppliers that Ofgem will intervene where customers are overcharged and ensure that no supplier benefits from non-compliance.”