MORE than one million households are due refunds on their energy bills after 18 suppliers were found to have broken switching rules.
It comes after energy regulator Ofgem ruled these customers were overcharged £7.2million collectively.
Ofgem found 18 suppliers failed to correctly protect customers’ tariff prices when they decided to switch supplier or tariff between 2013 and 2020.
Energy firms who were in breach of its price protection rules include the Big Six suppliers – British Gas, E.On, EDF, npower, SSE and Scottish Power.
Other suppliers that broke the rules are Octopus, OVO Energy and Shell.
Collectively, the energy firms who were found to be in breach are issuing refunds and redress payments worth £10.4million.
Where it isn’t possible to process refunds, the suppliers have agreed to make payments to the energy redress fund.
Customers who are due a refund include those on a standard variable tariff who switched to another supplier but did not have their variable tariff price protected during the switch.
Other households affected are those on a fixed-term tariff who switched to another supplier, or moved to another tariff with their current supplier, but did not have their fixed term tariff protected during the switch.
Several of the suppliers who broke the rules self-reported the issue to Ofgem.
All the energy firms were then requested to self-assess their practices and report back to the regulator.
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.”
More to follow…
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