Energy customers secure compensation for overcharging error - how to claim
The technical issue, which affected customers with more than one electricity meter between January 2019 and September 2024, means some households were unknowingly charged more than they should have been.
Energy suppliers are allowed to apply multiple standing charges for homes with multiple electricity meters. However, suppliers were charging some customers more than is allowed under the price cap when combined with unit rates.
The suppliers involved will now pay out a combined £10.8 million in compensation - £7.2m to just over 34,000 customers, and an additional £3.6m to Ofgem's voluntary redress fund.
The suppliers are:
- E.ON Next
- Ecotricity
- EDF Energy
- Octopus Energy
- Outfox The Market
- OVO Energy
- Rebel Energy
- So Energy
- Tru Energy
- Utility Warehouse
According to Ofgem, this was a “technical failure” rather than a deliberate attempt to overcharge. However, under licensing conditions, suppliers are still responsible for ensuring billing systems are compliant with price cap regulations.
Octopus Energy was the worst supplier, with nearly 21,000 customers affected.
Utility Warehouse and So Energy also saw significant numbers impacted, while others such as Good Energy and Green Energy UK had smaller cohorts but are still issuing refunds and compensation where appropriate.
High energy bills
The unfair charges came as Britons faced spiralling energy bills in the wake of Russia's invasion of Ukraine.
In that time the energy price cap peaked at £4,279 in January 2023 (or 67.47p per kWh), sparking state intervention to subsidise bills.
The average cost of electricity is currently 27.03p/kWh.
The energy price cap for April to June 2025 is £1,849, but NimbleFins estimates the average gas and electric bill per UK household will be £1,938 a year, when using median usage estimates from Ofgem’s ‘Typical Domestic Consumption Values’.
How to claim compensation
Ofgem said compensation and refunds have already been distributed automatically and customers do not need to do anything. But if you're unsure whether you're eligible for a refund you can check for any recent communication from your energy supplier. They may have emailed or written to you if you’re due a refund.
You can then contact your supplier’s customer service team and ask if your account was affected by the price cap overcharging error.
If a customer has since changed supplier, they will be contacted by their previous supplier in due course to arrange a refund, Ofgem said.
Rebel Energy, which is no longer trading, has issued refunds and compensation to all affected customers, Ofgem said.
Ofgem said all 10 suppliers have updated their systems and processes to prevent the error occurring in future.
Ofgem will continue to engage with suppliers to ensure that the payment packages are progressed in full, and will continue to closely monitor all suppliers to ensure they implement the price cap properly, the regulator said.
| Supplier | Number of customers | Total Refunds | Total Goodwill |
|---|---|---|---|
| E.ON Next | 160 | £45,195.82 | £9,330.33 |
| Ecotricity | 166 | £36,633.12 | £18,904.35 |
| EDF Energy | 3 | £112.29 | £30.00 |
| Octopus Energy | 20,862 | £2,636,884.00 | £546,278.00 |
| Outfox The Market | 570 | £6,106.06 | £4,590.00 |
| OVO Energy | 2,372 | £602,066.05 | £280,068.73 |
| Rebel Energy | 15 | £2,339.49 | £575.00 |
| So Energy | 1,558 | £266,041.16 | £58,285.85 |
| Tru Energy | 70 | £7,486.54 | £11,663.00 |
| Utility Warehouse | 8,272 | £2,043,098.84 | £453,960.00 |
| Total | 34,048 | £5,645,963.37 | £1,383,685.26 |
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