Millions of households to be refunded £10.40 on average after 18 energy suppliers overcharged switchers
More than a million households are to be paid a share of £10.4 million after energy regulator Ofgem found 18 gas and electricity suppliers overcharged customers when they switched. Refunds will be paid automatically with average payouts of £10.40, though you should contact your old supplier if you think you're affected but haven't received a payout.
Under Ofgem rules, a customer’s existing tariff price should be honoured during the switching process, which can take 18 days on average for gas, and 16 days on average for electricity. But Ofgem found 18 suppliers - including British Gas, EDF, Eon, Npower, Scottish Power, and SSE - had incorrectly charged switchers an additional £7.2 million between 2013 and 2020.
The firms involved have agreed to refund all customers affected and, in some cases, make additional goodwill payments on top to the collective tune of £10.4 million. Further action is not being taken by Ofgem at this stage, given suppliers co-operation and agreement to compensate. But the regulator warns that it will take action if suppliers fail to follow its price protection rules going forward.
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Switchers were overcharged by 18 suppliers
Ofgem says affected customers include:
Those on a standard variable tariff who switched to another supplier but did not have their variable tariff price protected during the switch.
Customers on a fixed tariff who switched to another supplier but did not have their fixed tariff protected during the switch.
Households on a fixed tariff who moved to another tariff with their existing supplier but did not have their fixed-term tariff protected during the switch.
You should be refunded automatically
Ofgem says customers who were overcharged when they switched tariff or supplier will have been contacted automatically - or will be - to have their money refunded. However, Ofgem adds that if you think you are owed a refund or compensation and haven't been paid it - perhaps because your old supplier no longer has your contact details - you can raise a complaint with the supplier you switched from.
Where suppliers can't locate households to process refunds, they have agreed to make payments to the Energy Saving Trust's energy redress fund, which is a collective pot divided up to charities that help energy customers in vulnerable situations.
The table below shows how many customers are due refunds from the 18 suppliers involved, and how much in total is due to be refunded.
Supplier | Number of customers affected | Total overpaid | Total redress package |
|---|---|---|---|
Bristol Energy | 12,617 | £55,982.64 | £56,552.64 |
British Gas/ Centrica | 141,415 | £391,176.79 | £1,269,095.47 |
E (Gas and Electricity) | 20,870 | £68,777.23 | £72,772.93 |
Eon | 28,126 | £181,668.29 | £238,884.29 |
EDF | 79,083 | £465,441.36 | £ 516,191.55 |
Engie | 9,061 | £12,803.98 | £21,218.74 |
ESB Energy | 1,961 | £35,102.00 | £49,787.00 |
Green Star Energy | 79,083 | £664,661.00 | £808,351.00 |
Npower | 2,030 | £24,207.69 | £25,602.69 |
Octopus Energy | 19,712 | £59,902.15 | £121,444.52 |
Orbit | 723 | £5,539.25 | £7,081.12 |
OVO Energy | 240,563 | £2,001,196.45 | £2,801,231.51 |
PFP Energy | 5,347 | £35,204.31 | £50,929.31 |
Scottish Power | 157,236 | £1,449,835.28 | £1,967,465.28 |
Shell | 225,823 | £1,001,203.40 | £1,217,203.40 |
So Energy | 10,514 | £59,723.56 | £78,480.89 |
SSE | 132,620 | £713,973.86 | £983,334.45 |
Utility Warehouse | 2,723 | £62,783.92 | £95,512.15 |
Energy UK - the trade body that represents energy suppliers - declined to comment.
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10 September 2024
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