Ten energy suppliers in the UK have compensated more than 34,000 customers to the tune of £7 million after an error resulted in overcharging, energy regulator Ofgem has announced.
The issue, spanning from January 2019 to September 2024, affected customers with multiple electricity meter points at their properties.
Octopus Energy, the UK’s largest supplier, led the compensation efforts, refunding £2.64 million and providing an additional goodwill payment of £546,278 to more than 20,000 customers.
Utility Warehouse followed, returning over £2 million to 8,272 affected customers.
Other suppliers involved included Ovo Energy, So Energy, Outfox The Market, Ecotricity, E.On Next, Tru Energy, Rebel Energy, and EDF Energy.
Ofgem confirmed that the compensation and refunds have already been distributed.
Suppliers can apply multiple standing charges for homes with multiple meters but Ofgem said this resulted in some customers being “erroneously charged more than is allowed under the price cap”.
The latest Ofgem price cap would see an average household with an annual energy bill of £1,738.
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.”
The regulator said all 10 suppliers have since updated their systems and processes to stop the issue recurring.
