Studying Time: 2 minutes
Clients overcharged by suppliers OVO and Good Power are to be refunded.
Are you an OVO or Good Power buyer? Then you might be owed a refund.
Power regulator Ofgem discovered these companies had been overcharging households for vitality use – and have been ordered to refund clients. The companies should pay a complete of £4 million, with round £2.7 million of this being cut up between 18,000 households.
OVO clients will obtain a median reimbursement of £181 and Good Power will refund £109 to affected houses.
Ofgem discovered the suppliers had charged clients totals above the vitality value caps set in place to guard individuals from vitality firms charging an excessive amount of. As clients had been charged above these charges, the regulator has now ordered these companies to return individuals’s cash to them.
Clients affected shall be refunded mechanically. You will need to notice that even if you’re an OVO or Good Power buyer, you might not have been impacted.
However what concerning the different £1.25 million owed? Properly, it will likely be paid by Good Power on to Ofgem. It is going to go into the regulator’s voluntary redress fund, which goals to assist these in susceptible positions throughout the UK.
Not the primary time
Shockingly, it’s the second time in just some days that Ofgem have come down on Good Power for failures in following coverage. This week, Good Power, E.ON Subsequent and Octopus Power had been ordered to pay a staggering complete of £8 million. This is because of both delaying or failing to make compensation funds to clients.
Based on Ofgem, the three companies had both missed or “unduly delayed” compensation funds. These are due “if a provider doesn’t present a ultimate invoice inside six weeks when a buyer switches to a different supplier”.
The vitality value caps are put in place to guard clients from unmanageable costs. It’s set by Ofgem and descriptions the utmost suppliers can cost for gasoline and electrical energy, per unit. The subsequent value cap announcement is due on 25th Might.
Total, suppliers failing to regulate tariffs according to new value caps resulted in Good Power was discovered to have overcharged almost 7,000 clients a complete of £391,650 between January 2019 and October 2022.
Nearly 11,000 OVO Power clients had been overcharged £1,492,917 between October 2022 and March 2023.
Dan Norton, deputy director of retail at Ofgem mentioned:
“It’s completely unacceptable that Good Power and Ovo Power clients had been overcharged, notably at a time that’s already so difficult and demanding for shoppers throughout the UK.”