The right way to declare compensation as power suppliers pay out £7m to overcharged prospects

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Your help makes all of the distinction. Learn extra Ten power suppliers within the UK have compensated greater than 34,000 prospects to the tune of £7 million after an error resulted in overcharging, power regulator Ofgem has introduced.

The problem, spanning from January 2019 to September 2024, affected prospects with a number of electrical energy meter factors at their properties.

Octopus Vitality, the UK's largest provider, led the compensation efforts, refunding £2.64 million and offering a further goodwill cost of £546,278 to greater than 20,000 prospects.

Utility Warehouse adopted, returning over £2 million to eight,272 affected prospects.

Different suppliers concerned included Ovo Vitality, So Vitality, Outfox The Market, Ecotricity, E.On Subsequent, Tru Vitality, Insurgent Vitality, and EDF Vitality.

Ofgem confirmed that the compensation and refunds have already been distributed.

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Trade regulator Ofgem stated the compensation and refunds could have been paid out to greater than 34,000 prospects. (PA Wire) Suppliers can apply a number of standing fees for houses with a number of meters however Ofgem stated this resulted in some prospects being “erroneously charged greater than is allowed below the worth cap”.

The newest Ofgem value cap would see a mean family with an annual power invoice of £1,738.

Charlotte Friel, director of retail pricing and methods at Ofgem, stated: “We count on all suppliers to have sturdy processes in place to allow them to invoice their prospects precisely.

“Whereas it’s clear that on this event errors have been made, fortunately, the problems have been promptly resolved, and prospects are being refunded.