Energy firms pay customers £7MILLION after overcharging them: Are you owed a refund?
Ten suppliers have paid thousands of customers £7million in refunds and compensation after overcharging them, the energy regulator has said.
Ofgem said over 34,000 customers with more than one electricity meter at their property had overpaid their energy bills between 2019 and 2024.
Suppliers can apply multiple standing charges for homes with more than one meter, but Ofgem says some customers were 'erroneously charged more than is allowed under the price cap when combined with unit rates.'
The regulator said it had investigated the issue and suppliers had agreed to issue £5.6 million in refunds and almost £1.4 million in goodwill payments.
Charlotte Friel, director of retail pricing and systems at Ofgem, said: '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.'
Ofgem found that Octopus had the most customers affected by the error at 20,862, paying out £2.6million in total refunds.
'The other suppliers to give refunds were Eon Next, Ecotricity, EDF, Outfox the Market, Ovo Energy, Rebel Energy, So Energy, Tru Energy, and Utility Warehouse.
Earlier this week, the regulator ordered Good Energy to pay £150,000 to former prepayment meter customers for failing to issue final bills.
Supplier refunds
Supplier Number of customers affected Total refunds Total goodwill payments
Eon 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
Are you due a refund?
Affected customers will be refunded automatically if they have not already been, and do not need to contact their supplier.
If a customer has since changed supplier, they will be contacted by their previous supplier to arrange a refund.
Customers of Rebel Energy, which closed last month, leaving 90,000 homes without a supplier, will be refunded.
Ben Gallizzi, Uswitch energy expert, said: 'Technical errors like this can occasionally happen, but providers must act quickly to spot when issues arise and make every effort to resolve problems promptly.
'This overcharging error impacted households with multiple meters. Affected customers will be refunded automatically by their provider, so they shouldn't need to do anything to get their money back.
'If you have submitted a meter reading recently but think there's an error in your bill, contact your supplier to raise the issue.'
Can you save money on energy bills? Check the best fixed deals
When energy prices spiked most households slipped energy price cap tariffs, but it is now possible again to switch to fixed rate energy deals that can save you money.
This is Money's recommended partner uSwitch lets you compare the best energy deals for you, based on your home and gas and electricity costs.
> Compare the best energy deals with uSwitch*
By entering your address and energy usage, you can search for energy deals that can cut your costs and suit how you live.
Switching energy provider can also help the planet, if you move to one of the green deals offering electricity from renewable sources and more environmentally-friendly gas.
*
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Leader Live
3 hours ago
- Leader Live
Brexit rules spark ‘clear demand' for more motorhome parking, lobby group says
Boosting provision for these vehicles would generate more revenue for local businesses and increase the number of visitors to tourist destinations outside the peak summer season, the Campaign for Real Aires (Campra) said. Aires is a French word used to describe designated stopping places for motorcaravans – the collective term for motorhomes and campervans – which are much more common in continental Europe than the UK. Post-Brexit rules mean UK passport holders are prohibited from being in the Schengen area – which covers most of the European Union and some other European nations – for more than 90 days within a 180-day period. That means many UK-based motorcaravan users are seeking domestic destinations for overnight trips. But a survey of 6,731 users suggested 88% are dissatisfied with the UK's availability of overnight parking in desirable locations. The poll also indicated that motorcaravaners spend an average of £51 per day in local businesses and £23 per night on overnight parking or campsite fees. Many respondents commented on the UK's lack of infrastructure and welcoming attitude compared with continental Europe, Campra said. Last month, Hampshire County Council approved plans to ban campervans and motorhomes from staying overnight at the south coast beauty spot of Keyhaven, near Lymington. It claimed the move would 'bring order' to the area. Campra managing director Steve Haywood said welcoming motorcaravans to an area 'can be a hugely positive move'. He went on: 'There is a clear demand – emphasised by post-Brexit travel restrictions – for more overnight stay options in UK towns and cities, and those towns and cities could benefit hugely by embracing motorcaravans. 'More councils are seeing the benefits of providing facilities, instead of suffering the cost of enforcement and bans, not to mention the loss of potential revenue to businesses. 'In Fleetwood, Lancashire, for example, the introduction of overnight parking in the seafront car park for £5 per night has seen a huge boost in revenue for local shops, and has been so successful that additional facilities are now being planned for motorcaravanners. 'Every council that has operated a 12-month trial aire has been successful and made the overnight parking permanent.' Driver and Vehicle Licensing Agency figures show more than 416,000 motorcaravans are registered in the UK. A spokesperson for the Local Government Association said: 'Policies around overnight motorcaravan parking and the provision of facilities are a matter for local councils.'
South Wales Guardian
3 hours ago
- South Wales Guardian
Brexit rules spark ‘clear demand' for more motorhome parking, lobby group says
Boosting provision for these vehicles would generate more revenue for local businesses and increase the number of visitors to tourist destinations outside the peak summer season, the Campaign for Real Aires (Campra) said. Aires is a French word used to describe designated stopping places for motorcaravans – the collective term for motorhomes and campervans – which are much more common in continental Europe than the UK. Post-Brexit rules mean UK passport holders are prohibited from being in the Schengen area – which covers most of the European Union and some other European nations – for more than 90 days within a 180-day period. That means many UK-based motorcaravan users are seeking domestic destinations for overnight trips. But a survey of 6,731 users suggested 88% are dissatisfied with the UK's availability of overnight parking in desirable locations. The poll also indicated that motorcaravaners spend an average of £51 per day in local businesses and £23 per night on overnight parking or campsite fees. Many respondents commented on the UK's lack of infrastructure and welcoming attitude compared with continental Europe, Campra said. Last month, Hampshire County Council approved plans to ban campervans and motorhomes from staying overnight at the south coast beauty spot of Keyhaven, near Lymington. It claimed the move would 'bring order' to the area. Campra managing director Steve Haywood said welcoming motorcaravans to an area 'can be a hugely positive move'. He went on: 'There is a clear demand – emphasised by post-Brexit travel restrictions – for more overnight stay options in UK towns and cities, and those towns and cities could benefit hugely by embracing motorcaravans. 'More councils are seeing the benefits of providing facilities, instead of suffering the cost of enforcement and bans, not to mention the loss of potential revenue to businesses. 'In Fleetwood, Lancashire, for example, the introduction of overnight parking in the seafront car park for £5 per night has seen a huge boost in revenue for local shops, and has been so successful that additional facilities are now being planned for motorcaravanners. 'Every council that has operated a 12-month trial aire has been successful and made the overnight parking permanent.' Driver and Vehicle Licensing Agency figures show more than 416,000 motorcaravans are registered in the UK. A spokesperson for the Local Government Association said: 'Policies around overnight motorcaravan parking and the provision of facilities are a matter for local councils.'
North Wales Chronicle
3 hours ago
- North Wales Chronicle
Farage plans to charge non-doms £250,000 fee which will be given to poor
On Monday, the party leader and MP for Clacton will reveal the policy which he said would 'encourage the return of wealth and talent to the United Kingdom', according to the Telegraph. The Labour Government abolished the non-dom tax status in April, which is where UK residents whose permanent home or domicile for tax purposes is outside the UK. Last year, former Conservative chancellor Jeremy Hunt revealed plans to scrap the tax status before successor Rachel Reeves sped up the process. Reform UK's policy would mean 'every high-net-worth newcoming (or returning leaver)' would pay a £250,000 one-off fee 'in return for a stable, indefinite remittance-style regime on offshore income and a 20-year inheritance-tax shield', Mr Farage wrote in an article for the Telegraph. All of this fee would be given to Britain's lowest-paid full-time workers through an automatic tax-free dividend via HMRC, the party leader added. In response, Labour said the policy was a 'golden ticket for foreign billionaires to avoid the tax they owe in this country'. Mr Farage wrote: 'Our policy is simple – Britain must be a place where success is celebrated, not punished with excessive taxes, crippling energy costs, or punitive inheritance levies. 'We will actively encourage the return of wealth and talent to the United Kingdom, on the clear condition that those who come here deliver immediate, visible benefits to our workers.' The plan would mean around 2.5 million 'hard-working Britons' would receive an 'annual cash bonus', the Reform UK leader claimed. He added: 'Our policy is not a 'golden visa' or a backdoor to citizenship. 'It is a one-time flat tax paid by newcomers in exchange for the certainty of a favourable tax status. 'Individuals will still be liable for all standard UK taxes on UK-sourced income, property and spending. 'But they won't be taxed on offshore income and gains for the duration of their agreed status.' A Labour spokesperson said: 'Nigel Farage can brand this whatever he wants – the reality is his first proper policy is a golden ticket for foreign billionaires to avoid the tax they owe in this country. 'As ever with Reform, the devil is in the detail. 'This giveaway would reduce revenues raised from the rich that would have to be made up elsewhere – through tax hikes on working families or through Farage's promise to charge them to use the NHS.'
