REG - OFGEM EDF Energy UK E.ON UK PLC - Ofgem secures compensation on overcharging error

E.ON SEAnnouncement

09/05/2025 08:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250509:nRSI9546Ha&default-theme=true

RNS Number : 9546H  OFGEM  09 May 2025

PRESS RELEASE

0700 FRIDAY 9 MAY 2025

Ofgem secures customer compensation from ten suppliers for technical
overcharging error

Ten suppliers have paid more than 34,000 customers a total of £7 million in
compensation and refunds after overcharging some customers in error, following
a compliance review by Ofgem.

This issue specifically impacted customers with 'Restricted Meter
Infrastructure' between January 2019 and September 2024, which means they have
more than one electricity meter point at their property recording energy
usage.

Energy suppliers are allowed to apply multiple standing charges for homes with
multiple electricity meters. However, this meant that some customers were
erroneously charged more than is allowed under the price cap when combined
with unit rates.

The regulator expects suppliers to be vigilant and ensure customers are not
charged more than the price cap, which sets a limit on how much suppliers can
charge for energy. This includes ensuring the application of multiple standing
charges does not lead to price cap overcharging.

After identifying the issue and investigating, the suppliers swiftly rectified
the issue and agreed to pay a total of £7million in refunds and compensation
to those affected. This includes £5.6million in refunds and almost
£1.4million 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."

All ten suppliers have updated their systems and processes to prevent the
error occurring in future. Ofgem will continue to engage with suppliers to
ensure that the payment packages are progressed in full, and will continue to
closely monitor all suppliers to ensure they implement the price cap properly,
and protect their consumers from paying too much for their energy.

 

ENDS

 

Notes to editor

·    The supplier payment breakdown can be found here:

 Supplier           No. of customers  Total Refunds   Total Goodwill
 E.ON Next          160               £45,195.82      £9,330.33
 Ecotricity         166               £36,633.12      £18,904.35
 EDF Energy         3                 £112.29         £30.00
 Octopus Energy     20,862            £2,636,884.00   £546,278.00
 Outfox The Market  570               £6,106.06       £4,590.00
 OVO Energy         2,372             £602,066.05     £280,068.73
 Rebel Energy       15                £2,339.49       £575.00
 So Energy          1,558             £266,041.16     £58,285.85
 Tru Energy         70                £7,486.54       £11,663.00
 Utility Warehouse  8,272             £2,043,098.84   £453,960.00
 Total              34,048            £5,645,963.37   £1,383,685.26

 

·    Ofgem has published a compliance note with further details
https://www.ofgem.gov.uk/decision/supplier-compliance-price-cap-requirements-customers-restricted-meters
(https://www.ofgem.gov.uk/decision/supplier-compliance-price-cap-requirements-customers-restricted-meters)

·    Customers will be refunded automatically, if they have not been
already, and do not need to do anything. If a customer has since changed
supplier, they will be contacted by their previous supplier in due course to
arrange a refund.

·    Standard Licence Condition ("SLC") 28AD.1 requires suppliers to
ensure that the charges applicable to each relevant customer do not exceed the
price cap. This includes customers with 'Restricted Meter Infrastructure'.

·    The energy price cap (https://www.ofgem.gov.uk/energy-price-cap) was
introduced by the government and has been in place since January 2019, and
Ofgem is required to regularly review the level at which it is set. It ensures
that an energy supplier can recoup its efficient costs while making sure
customers do not pay a higher amount for their energy than they should. The
price cap, as set out in law, does this by setting a maximum that suppliers
can charge per unit of energy.

·    While the error is a serious matter, the regulator recognises that
the suppliers acted quickly to resolve the issue and started the refund
process promptly.  The commendable extent of their engagement through the
compliance process has been considered when agreeing the level of goodwill
paid.

·    In the case of Rebel Energy, which is no longer trading, Ofgem has
confirmed that all customer refunds and compensation have been issued.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IRSFLFEEEIITIIE