Yorks power firm pays £2.1m penalty for overcharging

Ofgem has handed a Yorkshire energy supplier a multimillion pound fine for deliberately overcharging customers.

United Gas & Power, which has about 2,700 customers, settled an inquiry launched by the energy regulator by agreeing to pay a £2.1m penalty after Ofgem found it overcharged customers by more than £2,000, and by an extra £22,000 in one case.

The regulator also found that some customers waited up to seven months before funds were repaid.

“UGP’S behaviour was unacceptable. No matter what financial difficulties companies may find themselves in, it is plainly unjustifiable and wholly unacceptable to deliberately overcharge customers to boost revenue,” said Cathryn Scott of Ofgem.