Good Energy, a UK-based renewable energy supplier, has been ordered by Ofgem to pay over £150,000 in compensation and redress after failing to issue final bills and refund credit balances to more than 2,200 prepayment meter customers over a nine-year period
Regulatory Findings
An investigation by Ofgem revealed that between 2014 and October 2023, 2,284 customers who either switched suppliers or terminated their contracts with Good Energy did not receive final bills within the required six-week timeframe. Additionally, many did not receive refunds for remaining credit balances, contravening Standard Licence Condition 27.17.
In response, Good Energy has paid £55,281 directly to affected customers, averaging £66 per individual, and contributed £94,786 to the Energy Industry Voluntary Redress Fund, which supports vulnerable energy consumers.
Ofgem’s Stance
Beth Martin, Ofgem’s Director for Consumer Protection and Competition, stated:
“At a time when so many households are facing financial difficulty, it’s unacceptable that Good Energy failed to provide refunds of money that was owed to customers, compensation they were due, and final bills they were entitled to.”
She emphasised the importance of accurate billing and proactive issue reporting by suppliers to maintain consumer trust and regulatory compliance.
Company Response
Nigel Pocklington, CEO of Good Energy, expressed regret over the billing system issues, stating:
“We were dismayed to find the billing system issue causing … .”
He added that upon identifying the problem, the company implemented manual processes to prevent further occurrences and has since updated its systems to ensure compliance
Industry Context
This incident follows similar issues with other energy suppliers. In 2023, E.ON Next paid £14.5 million in compensation for failing to provide final bills and refunds to its customers.
Ofgem has collected over £400 million in payments since 2020 … using the funds to assist struggling households with their energy bills.
Consumer Advice
Customers who believe they may have been affected by such billing errors are advised to contact their energy supplier directly. If issues remain unresolved, complaints can be escalated to the Energy Ombudsman.
To manage energy costs effectively, consumers are encouraged to:
- Lower heating thermostats by one degree to save on bills.
- Turn off appliances and lights when not in use.
- Install smart meters to monitor energy usage.
- Regularly compare energy tariffs to ensure competitive rates.
These steps can contribute to more efficient energy consumption and cost savings.