Energy firm pays out £1.76m to customers

Energy supplier Bulb has had to pay out almost £2 million after the regulator ruled it had failed more than 60,000 customers.

The firm is to pay £1.76m in package of redress, refunds and goodwill payments after Ofgem found it had fallen foul of rules in switching, overcharging, and Priority Services Register issues.

Consumer groups welcomed the crackdown.

Richard Neudegg, head of regulation at Uswitch. com, said: “It is positive to see that Bulb has rectified the situation and since improved its processes, paying a £1.76m package of redress, refunds and goodwill payments.

However, consumers do expect all suppliers to get the basics right – and the system failures leading to overcharging of 11,400 customers an average of £61 will cause concern for some households.

A smaller number of Bulb’s customers were also blocked from switching – and have missed out on crucial savings. Ofgem said the supplier had confirmed that it has improved its governance and processes and compensated and refunded all customers who suffered detriment as a result. It paid a further £157,000 into the voluntary redress fund to support customers in a vulnerable situation.

Jonathan Brearley, chief executive of Ofgem, said: “Bulb overcharged some customers, and risked leaving vulnerable customers without access to essential network services.”