ENERGY company iSupply has been fined £1.5million after overcharging thousands of customers.
iSupply overcharged around 4,400 customers on defaults tariffs protected by the price cap and failed to alert energy regulator, Ofgem.
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The company has refunded customers affected by the overcharging and has paid the fine to Ofgem’s voluntary redress fund which gives money to charities to help those in need.
In January 2019, the price cap came into force on default tariffs to protect customers.
All suppliers are required to charge their default tariff customers at or below the levels of the cap to ensure they pay a fair amount for their energy.
Between January to March 2019, Ofgem found that iSupply overcharged a total amount of £36,270.
Under the new price cap, energy suppliers cannot charge customers a default tariff of more than £1,137 per year.
Senior iSupply employees were aware of the breach in January 2019 but did not report to Ofgem until a whistleblower came forward to Ofgem in August 2019.
Anthony Pygram, from Ofgem, said: “if a licensee breaches the rules, it quickly needs to tell Ofgem and put things right for its consumers.
“However, iSupply has admitted it failed to do son in this instance”.
“The action we have taken against iSupply send a strong message that all suppliers must treat their customers fairly and quickly address known harm so customers are protected, or face the consequences”.
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iSupply is not the only company who has broken the rules. In June 2019, Shell Energy overcharged 12,000 customers a total of £100,734 between January and March of this year.
Shell Energy had to refund £390,000 to its customers.
Gillian Guy, from Citizens Advice, said: “We’re pleased to see that iSupply has not only refunded the customers it overcharged, but is also paying this voluntary amount into Ofgem’s redress fund.
“iSupply has promised to improve the way it’s run to make sure this cannot happen again. Ofgem, as the regulator, must make sure that they keep to their word.
Adam French, from Which?, said: “We’d urge anyone unsatisfied with their supplier to shop around for the best deals on the market and to switch now”.
Not sure what the energy cap is or how it works? We explained everything you need to know.
According to Ofgem, Energy price caps make sure you pay a fairer price for your energy.
They limit how much suppliers can charge you per unit of energy. It doesn’t matter which supplier you are with, they must apply the caps.
Every six months Ofgem determines what the new price cap will be.
Not everyone’s energy tariff is price capped. They don’t apply if you are on a fixed-term energy tariff or you choose to sign up for renewable energy tariff.
Price caps apply to those who are on a default energy tariff from your supplier or have a prepayment energy meter.
If you want more information about your energy bill go to Ofgem’s website.
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