iSupply pay out £1.5 million for overcharging and poor compliance
iSupply charged 4,400 customers on default tariffs more than the fixed price cap.
iSupply is set to pay out £1.5 million after the company overcharged around 4,400 customers who were on their default tariffs.
This was a result of iSupply’s insufficient governance and processes in place to stop non-compliance related issues from happening. The amount of money iSupply owe is for failing to address increasing tariffs protected by the price cap, resulting in mass refunds across their customer base.
The price cap for the 11 million iSupply customers was established on the 1st January 2019, and from then until March 2019, the company overcharged the 4,400 customers a total of £36,270. For the second price cap period, which was April to September 2019, 25 customers were overcharged by £53.
iSupply has since refunded customers it overcharged, but has further agreed to pay £1.5 million into Ofgem’s voluntary redress fund for its wrongdoings.
The director of conduct and enforcement at Ofgem, Anthony Pygram, said:
“If a licensee breaches the rules, it quickly needs to tell Ofgem and put things right for its consumers. However, iSupply has admitted it failed to do so in this instance.”
“Suppliers must charge their default tariff customers at or below the level of the price cap. Senior staff at iSupply knew that they were overcharging default tariff customers yet failed to refund them and report the issue to Ofgem in a timely manner.”
“The action we have taken against iSupply sends a strong message that all suppliers must treat their customers fairly and quickly address known harm so that customers are protected, or face the consequences.”
Here’s what Victoria Arrington, PR and content marketing manager for energyhelpline, had to say on the matter:
“iSupply paying out this massive £1.5 million “make good” payment reflects just how serious Ofgem can be with the new licensing procedures and price cap – especially with the original overcharges being relatively small in comparison (including one of only £53)."
“This is a hard punishment for failure to be transparent, and a strong wake-up call to any supplier who might lack the proper governance and processes to swiftly address non-compliance. Ultimately, suppliers big and small must follow the rules and treat customers fairly.”
"Ofgem’s hard-line stance highlights to customers that there are procedures and rules in place to protect them. However, customers can also take action. If you ever think you are being treated incorrectly by your supplier, then leave! There’s a great array of suppliers out there, such as green energy and 5 star ones - the choice is yours. On average, energyhelpline has found that customers could save an average of £225 per year, and some could save even more if they switch. It only takes minutes, so there is no reason to hesitate."
"There are numerous suppliers out there to choose from, so there is no need to put up with any behaviour that you think is unacceptable.”