LONDON: Ten energy suppliers have refunded and compensated more than 34,000 customers after Ofgem uncovered a technical overcharging error that resulted in excess charges beyond the regulated price cap.
The suppliers paid a total of £7 million—£5.6 million in refunds and £1.4 million in goodwill payments—after a compliance review by the energy regulator. The issue affected customers with Restricted Meter Infrastructure, a setup with multiple electricity meter points, between January 2019 and September 2024.
Under the price cap, suppliers must ensure standing charges do not lead to overbilling. While multiple standing charges are permitted for households with multiple meters, some customers were incorrectly billed at rates exceeding regulatory limits.
Charlotte Friel, director of retail pricing and systems at Ofgem, said the regulator remains committed to ensuring fair pricing.
“Our duty is to protect energy consumers, and we set the price cap so customers don’t pay more for their energy than they should,” Friel said. “We expect all suppliers to have robust processes in place to bill customers accurately. While errors were made, they have been swiftly resolved, and affected customers are receiving refunds.”
Ofgem said all ten suppliers have updated their systems to prevent future errors and pledged to continue monitoring the industry to ensure compliance with the price cap.