10 May, 2025 | Admin | No Comments
Energy suppliers to refund households £7,000,000 after overcharging customers
Ten energy suppliers are paying customers £7 million in refunds after overcharging them for five years.
More than 34,000 customers across the UK with at least two electricity meters in the property overpaid their bills between 2019 and 2024.
Ofgem said customers were ‘erroneously charged more than is allowed under the price cap when combined with unit rates’.
After investigating the issue, suppliers agreed to issue £5 million in refunds and £1.4 million in goodwill payments.
Octopus Energy had 20,862 most customers affected, and will pay out £2.6 million in total refunds.
Eon Next, Ecotricity, EDF, Outfox the Market, Ovo Energy, Rebel Energy, So Energy, Tru Energy and Utility Warehouse are also issuing refunds.
Which energy suppliers overcharged customers?
Eon Next – 160 customers affected
Total Refunds – £45,195.82
Total goodwill payments – £9,330.33
Ecotricity – 166 customers affected
Total Refunds – £36,633.12
Total goodwill payments – £18,904.35
EDF Energy – 3 customers affected
Total Refunds – £112.29
Total goodwill payments – £30.00
Octopus Energy – 20,862 customers affected
Total Refunds – £2,636,884.00
Total goodwill payments – £546,278.00
Outfox The Market – 570 customers affected
Total Refunds -£6,106.06
Total goodwill payments – £4,590.00
Ovo Energy – 2,372 customers affected
Total Refunds – £602,066.05
Total goodwill payments – £280,068.73
Rebel Energy – 15 customers affected
Total Refunds – £2,339.49
Total goodwill payments – £575.00
So Energy – 1,558 customers affected
Total Refunds – £266,041.16
Total goodwill payments – £58,285.85
Tru Energy – 70 customers affected
Total Refunds – £7,486.54
Total goodwill payments – £11,663.00
Utility Warehouse – 8,272 customers affected
Total Refunds – £2,043,098.84
Total goodwill payments – £453,960.00
Charlotte Friel, director of retail pricing and systems at Ofgem, said: ‘We expect all suppliers to have robust processes in place so they can bill their customers accurately.
‘While it’s clear that on this occasion errors were made, thankfully, the issues were promptly resolved, and customers are being refunded.
‘Today’s outcome serves as a reminder to all energy suppliers that they must implement the price cap properly and do their due diligence.
‘It also shows that, where appropriate, Ofgem is prepared to work with suppliers that fail to comply with our rules.’
Who is eligible to get a refund?
Affected customers will be refunded automatically.
If customers have since changed supplier, they will be contacted by their previous company to arrange a refund.
Rebel Energy, which closed last month and left 90,000 homes without a supplier, will be refunded.
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.
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