Energy Firms Paid £10m In Charges In 2019

Energy companies have paid £10 million in charges in the last year due to several providers being accused of breaching regulations.

Ofgem revealed households and regulators were reimbursed by energy providers after a series of infringements.

They paid £4 million to customers in compensation, as well as giving £4.6 million to Ofgem’s Voluntary Redress Fund, and £1.5 million to the regulator, Energy Voice reported.

Auto-switching service Switchcraft discovered the blunders, which saw Npower, SSE, British Gas, EDF, Solarplicity, Green Star Energy, Extra Energy and Eversmart Energy getting into trouble.

Head of research at Switchcraft Alex Dickson said: “It’s great to see Ofgem on the front foot when it comes to enforcement actions against suppliers.”

The regulator also introduced a High Court injunction against Npower last December, as it did not comply with Ofgem’s group switching programme.

Between April 2018 and March 2019, 15 cases were completed. It was concluded there was “no formal finding of breach” in seven of the cases; six were made to pay compensation before the cases were considered closed, and two were found to have formally breached conditions and action was taken accordingly.

A further 12 cases are still being investigated, with many customers having complained about unfair treatment, incorrect charges, payment failures, and problems switching provider.

Earlier this year, Ofgem revealed consumers will automatically be given £30 in compensation from May 1st if they were mistakenly switched to another provider without giving instruction to do so.

They can receive up to a maximum of £120 for these “erroneous switches” if they are not dealt with in a “timely fashion”.

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