Hundreds of households across the UK are due refunds after two renewable energy suppliers overcharged their customers.
Energy regulator Ofgem found that customers with Good Energy and F&S Energy were charged an 'unauthorised administration' fee. The issue affects customers on Feed-in Tariffs (FIT), which are renewable energy deals available to properties with the likes of solar panels and wind turbines.
The FIT scheme was introduced by the Government in 2010 to promote renewable energy, and allows customers to sell the electricity they generate from home. Good Energy and F&S Energy will now refund a total of £800,000 to customers after the error, The Mirror reports.
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Good Energy has agreed to refund over £453,000, and will make additional goodwill payments totalling £200,000. Meanwhile, F&S Energy will refund £94,040 and make goodwill payments of £50,000.
Ofgem director of enforcement and emerging issues Cathryn Scott said: "The outcome of this matter sends a clear reminder to suppliers that they must comply with their obligations under the decarbonisation schemes and ensure that FIT customers receive payments they are entitled to for their renewable generation."
Good Energy chief executive Nigel Pocklington said: "Our annual Ofgem audit results have consistently reflected our commitment to high levels of service for generator customers. So we were very disappointed that Ofgem consider the admin charges we applied to a less than 1% of customers, which are not typical domestic solar generators, to be non-compliant with the scheme.
"We are no longer applying this charge and have contacted all affected customers to inform them of their refunds."
F&S declined to comment.
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