Around 18,000 billpayers are set to receive £4 million in compensation due to overcharging.
Energy regulator Ofgem found that suppliers Ovo Energy and Good Energy overcharged customers during the energy crisis. The regulator said both suppliers' errors resulted in people being charged above the maximum rates allowed under the energy price cap or the Government's Energy Price Guarantee scheme.
It is understood that households affected by the overcharging will receive a combined amount of £2.7 million from the companies while an extra £1.25 million will be issued to vulnerable customers across the country. According to Ofgem, this means the average Good Energy customer will receive £109 while Ovo customers will receive an average of £181.
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Dan Norton, deputy director of retail at Ofgem, said: "It is totally unacceptable that Good Energy and Ovo Energy customers were overcharged, particularly at a time that is already so challenging and stressful for consumers across the UK. Energy suppliers should hear this loud and clear: we expect suppliers to act with the utmost care and integrity.
“We will continue to hold them to account if they do not meet their customer protection or reporting obligations.”
It comes shortly after two other firms and Good Energy had to pay roughly £60 a customer to more than 100,000 households due to not providing a final bill within six weeks of a customer switching. E.on Next paid around £5.5 million to 95,000 customers, Octopus Energy paid £750,000 to around 19,000 customers, and Good Energy paid £18,000 to nearly 350 customers.
Ofgem added that a further £1.7 million will be paid into Ofgem's 'voluntary redress fund' which supports charities related to energy project, including providing aid to vulnerable energy customers.
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