Energy regulator Ofgem has found more than 34,000 customers were affected between January 2019 and September 2024
Thousands of energy customers have been paid £7million in compensation and refunds after they were accidentally overcharged.
Ofgem has found more than 34,000 customers were affected between January 2019 and September 2024. The issue relates to customers with Restricted Meter Infrastructure, which means they have more than one electricity meter point.
Energy suppliers are allowed to apply multiple standing charges for homes with multiple electricity meters. However, this meant some customers were incorrectly charged more than is allowed under the price cap when combined with unit rates.
A total of ten suppliers have updated their systems and compensated customers as a result of the Ofgem review. This includes £5.6million in refunds and almost £1.4million in goodwill payments. You can see a table of all the firms affected below.
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.”
It comes after the Ofgem price cap rose to £1,849 a year for the average dual fuel household paying by direct debit. Energy analysts at Cornwall Insight are predicting it could fall to £1,683 in July.
Ofgem will announce its new energy price cap by May 27. This new rate will come into force from July 1 and will run for three months, until August 31.
Despite what its name suggests, the Ofgem price cap does not put a limit on how much you can pay for energy – instead, it sets the maximum unit price you can be charged for gas and electricity, as well as the maximum daily standing charge.
£7million awarded after energy bill failures
The table below shows the energy firms that have compensated customers, the number of customers affected, then the total amount paid in refunds and goodwill payments.
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
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