Suppliers told to refund energy customers after pricing error


Updated on 16 August 2016 | 3 Comments

Thousands of households have been incorrectly charged on their gas bill - are you due compensation?

Thousands of households have been overpaying for their gas, with some charged nearly three times too much.

The mistake came to light when one supplier discovered it had mixed up measurements from older imperial meters with modern metric ones. 

E.ON revealed it had overcharged 350 of its customers, with some overpaying for up to 15 years. 

The company said that all of the compensation would be worked out on an individual basis. 

Cut your energy bills by switching to a cheaper deal

'Thousands more' affected

It's not clear how many other energy firms made the same error, but energy regulator Ofgem believes that several thousand households may have been affected and has called on all energy firms to identify any customers who have been overcharged by this Friday (August 19).

The issue will apply to households whose imperial meters were replaced with metric meters. 

In some cases the supplier may not have altered the records properly, meaning that their energy consumption was measured in cubic feet, rather than cubic metres.

Underpaying

There will also be households in the reverse situation who have been undercharged for their gas, but thankfully they won’t have to pay any extra.

E.ON says that there were 250 customers who should have paid 65% more than they did, but Ofgem believes that several thousand households have been affected across the energy market.

All the other energy firms have been ordered to identify any households that have been overcharged by Friday August 19.

Cut your energy bills by switching to a cheaper deal

Getting compensation

Affected customers don’t need to take any action.

But if you want a bit more clarity anyway, have a look at the Government’s rundown of the key differences between imperial and metric meters and how your energy bill is calculated on each.

Source: gov.uk

An Ofgem spokesman said: “Working with Energy UK, we’re ensuring suppliers take immediate and decisive action to identify affected customers.”

Energy UK added: “Any customer affected will be contacted shortly by their supplier and where there has been overcharging, a refund will be issued as quickly as possible.”

Still feel like you’re owed a refund? Read How to reclaim money from energy firms to find out more.

Better yet, switch your energy supplier and get a cheaper deal altogether. Get a free, no obligation quote with loveMONEY today

More household money essentials:

7 simple rules to make sure you'll never run out of cash

Eurostar: your rights if your train is delayed or cancelled

7 lessons kids need to learn about money

Comments


Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.