header

18 suppliers to pay £10.4 million in refunds and redress payments

Ofgem found 18 suppliers failed to correctly protect customers' tariff prices when they looked to switch.

curve
By Matt Maynard · 2nd March 2021

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:

SupplierNumber of customers affectedTotal detrimentTotal redress package
Bristol Energy12,617£55,982.64£56,552.64
British Gas/Centrica141,415£391,176.79 £1,269,095.47
E20,870£68,777.23 £72,772.93
E.ON28,126£181,668.29£238,884.29
EDF79,083 £465,441.36£516,191.55
Engie9,061 £12,803.98£21,218.74
ESB Energy1,961£35,102.00 £49,787.00
Green Star Energy79,083£664,661.00£808,351.00
npower2,030£24,207.69£25,602.69 
Octopus Energy19,712£59,902.15£121,444.52
Orbit723£5,539.25£7,081.12
OVO Energy240,563£2,001,196.45£2,801,231.51
PFP Energy5,347£35,204.31£50,929.31
Scottish Power157,236£1,449,835.28£1,967,465.28
Shell225,823 £1,001,203.40£1,217,203.40
SO Energy10,514£59,723.56£78,480.89
SSE132,620£713,973.86£983,334.45
Utility Warehouse2,723£62,783.92£95,512.15

Source: Ofgem 

Switch your energy in minutes - save up to £* a year

A service you can trust

Ofgem confidence code stampTrustpilot excellent rating

How switching works

  1. Enter your details

    Answer a few quick questions and then we can find you some great energy deals based on your location and usage.

  2. Compare the best deals

    Once we’ve got your prices we’ll help you compare the best ones, and we can answer any questions you have too.

  3. We’ll handle the switch

    With us there’s no obligation, but if you want to take one of the energy deals then we’ll handle it all for you free of charge.