A HOST of energy firms have paid out £7million in compensation and refunds to tens of thousands of customers after overcharging them.
Ten firms have handed out the cash including Utility Warehouse, Octopus Energy and EDF Energy.
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Ofgem, the industry regulator, said the compensation and refunds has been issued to more than 34,000 customers.
The issue took place between January 2019 and September 2024 – when customers with more than one electricity meter point in their homes were incorrectly charged more than they should have been.
Energy firms are allowed to apply multiple standing charges for homes with more than one electricity meter.
However, this rule meant some customers were charged more than is allowed under the price cap when combined with unit rates.
More than 20,000 Octopus Energy customers were overcharged and have been issued refunds totalling £2,636,884.
Over 2,300 OVO Energy customers were also affected, with refunds totalling £602,066.
There were also 8,272 Utility Warehouse customers hit by the error, with these customers receiving £2,043,098 in refunds or compensation between them.
This is the full list of firms that were impacted by the error:
- E.ON Next
- Ecotricity
- EDF Energy
- Octopus Energy
- Outfox the Market
- OVO Energy
- So Energy
- Tru Energy
- Utility Warehouse
- Rebel Energy
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.”