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Ten UK energy firms to pay £7m in compensation after overcharging error
Ofgem review showed more than 34,000 customers were erroneously billed more for standing charges

Ten UK energy suppliers including EDF, E.ON and Octopus are to pay £7m in compensation and refunds after overcharging customers, after a review by the energy regulator for Great Britain.
Ofgem said the suppliers had agreed to pay more than 34,000 customers compensation and refunds because of erroneously billing them more for standing charges than is allowed under the regulator’s price cap. Standing charges are daily fees added regardless of how much energy is used.
The affected customers all had restricted meter infrastructure, meaning more than one electricity meter point recording usage at their property, and were erroneously overcharged between January 2019 and September 2024.
While energy suppliers are allowed to apply multiple standing charges for homes with multiple electricity meters, companies are not allowed to break Ofgem’s price cap, which limits the maximum amount that can be charged in each unit of electricity or gas used.

Screenshot 2025-05-09 at 20-48-23 Ten UK energy firms to pay £7m in compensation after overcharging error Energy industry The Guardian.png (54.84 KiB) Viewed 241 times

The 10 suppliers have agreed to pay out £5.6m in refunds and almost £1.4m in goodwill payments.

Ofgem found that Octopus had the most customers affected by the error in overcharging, at 20,862 of the 34,048. The other suppliers to give refunds were E.ON Next, Ecotricity, EDF, Outfox the Market, Ovo Energy, Rebel Energy, So Energy, TruEnergy and Utility Warehouse.

A spokesperson for Octopus apologised but added that it occurred on a “particularly rare” type of meter, affecting only 0.3% of its customer base.

“Mistakes happen, and we’re sorry when they do,” a spokesperson said. “We were following one piece of Ofgem regulation but in doing so accidentally infringed another. We are glad to have now made it right for them.”

Stinsy wrote: ↑Sat May 10, 2025 6:32 am Strange how many people with more than one meter are on Octopus

AE-NMidlands wrote: ↑Sat May 10, 2025 8:34 am

Stinsy wrote: ↑Sat May 10, 2025 6:32 am Strange how many people with more than one meter are on Octopus

I have a friend who has asked me about extending his FIT system. I tried to reassure him it was OK nowadays but he was concerned that if he wanted to export more he would have to pay another standing charge (or 2) to re-connect his 3-phase supply which dates from when he had electric heating. This news item might explain his concern.

I guess heavy users found out about Octopus early on because they were the ones looking hardest for a fairer tariff...