Utility Warehouse will refund and compensate more than 3,400 warm home discount (WHD) customers after over-charging them due to a system error when the price cap was applied.
In December 2019 the supplier found that 3,430 customers who receive the WHD but pay for their energy when they receive a bill had been paying above the correct default tariff cap between the previous January and November.
Ofgem said Utility Warehouse “quickly self-reported” the issue to the regulator and confirmed that it had overcharged by £150,000. Following this, the supplier’s systems were quickly updated to correct the issue.
Utility Warehouse is now in the process of issuing full refunds to all affected customers and will pay an extra £300,000 of goodwill payments.
Furthermore, it has agreed to pay £200,000 into Ofgem’s voluntary redress fund.
The regulator said the total redress package it secured reflected the seriousness of the breach, its commitment to protecting the needs of customers in vulnerable circumstances, and its zero-tolerance approach to compliance with the price cap requirements.
Ofgem added that due to the steps taken by the supplier, it decided not to take formal enforcement action and did not require a larger payment on this occasion.
In a statement the energy regulator added: “Ofgem closely monitors all suppliers’ conduct, including their approach to the implementation of the cap, and will continue to hold suppliers to account if they do not meet their obligations.”