Ofgem has discovered 18 energy suppliers who did not abide by the price protection rules, which protects a customers' tariff price when they switch suppliers or tariffs after a price increase.
Some suppliers came forward to Ofgem and self-reported the issue, which resulted in Ofgem requesting all suppliers to self-assess. This process revealed 18 suppliers were not compliant between 2013-2020. In total, 7 million customers were altogether overcharged £7.2 million.
The customers affected were:
- Those on a standard variable tariff who switched to another supplier
- Those on a fixed tariff who switched to another supplier
- Those on a fixed tariff who moved to another tariff with their supplier
The failures were put down to suppliers not having the appropriate arrangements in place to ensure the protections were applied in full when customers switched.
All suppliers have made refunds to the affected parties along with some goodwill payments. These refunds and redress payments of all suppliers involved come to the total of £10.4 million.
Anna Rossington, interim director of retail at Ofgem said:
“Customers should have confidence in switching and not be overcharged when doing so. This case sends a strong message to all suppliers that Ofgem will intervene where customers are overcharged and ensure that no supplier benefits from non-compliance."
“It also shows that, where appropriate, Ofgem is prepared to work with suppliers who have failed to comply with the rules, but who are willing to self-report issues and put things right for their customers.”
The suppliers, number of customers affected, and redress payments can be found in the table below:
|Supplier||Number of customers affected||Total detriment||Total redress package|
|Green Star Energy||79,083||£664,661.00||£808,351.00|