Around 18,000 households are set to receive £4 million in compensation after the regulator found suppliers Ovo Energy and Good Energy had overcharged customers during the energy crisis.
Ofgem said errors by the two suppliers meant some people were charged above the maximum rates allowed under either the energy price cap or the Government’s Energy Price Guarantee scheme.
The affected households will receive a combined total of £2.7 million from the two companies while an extra £1.25 million will go to vulnerable customers in the UK.
The average amount paid to Good Energy customers will be £109 while Ovo customers will receive an average of £181, Ofgem said.
Dan Norton, deputy director of retail at Ofgem, said: “It is totally unacceptable that Good Energy and Ovo Energy customers were overcharged, particularly at a time that is already so challenging and stressful for consumers across the UK.
“Energy suppliers should hear this loud and clear: we expect suppliers to act with the utmost care and integrity.
“We will continue to hold them to account if they do not meet their customer protection or reporting obligations.”
