Tens of thousands of UK energy customers are set to receive refunds and compensation after ten major suppliers – including Octopus, EDF and E.ON – illegally overcharged them in breach of Ofgem’s price cap rules.
The error affects over 34,000 households between January 2019 and September 2024, with total payments amounting to £7 million.
If you’ve ever had more than one electricity meter at your property, you could be one of the people owed money.
What happened and why it matters
The issue centres around standing charges – the daily fixed fee added to your bill regardless of how much energy you actually use.
Some homes, particularly those with restricted meter infrastructure (more than one electricity meter point), were incorrectly billed multiple standing charges in ways that exceeded Ofgem’s legally enforceable price cap. This cap on what suppliers can charge is designed to protect consumers from unfair pricing.
Although suppliers can charge more than one standing charge for properties with multiple meters, they must still stay within the overall cap. In this case, ten companies failed to do so, affecting thousands of customers for years.
Who is affected?
The supplier with the largest number of affected customers is Octopus Energy, with more than 20,000 overcharged accounts. Other companies include:
- E.ON Next
- EDF
- Ecotricity
- Ovo Energy
- Utility Warehouse
- Rebel Energy
- So Energy
- Tru Energy
- Outfox the Market
What are customers being paid?
Ofgem confirmed that suppliers have agreed to pay a total of:
- £5.6 million in refunds, and
- £1.4 million in goodwill payments
That means some customers could receive more than just a refund – they’ll get compensation too for the inconvenience and the error.
Good Energy to pay £150,000 to former prepayment meter customers
This isn’t the only instance of energy overcharging to hit the headlines. Earlier this month, Ofgem also fined Good Energy for failing to issue timely final bills to thousands of prepayment customers. This failure meant many customers were left waiting years for credit refunds they were owed.
In this case, more than 2,200 energy customers are receiving compensation, with some errors going back as far as 2014.
Do customers need to do anything to get their refunds and compensation?
In most cases, no. Ofgem has confirmed that the 10 energy companies involved in the overcharging scandal have agreed to proactively refund affected customers and issue goodwill payments.
However, if you had a property with more than one electricity meter between January 2019 and September 2024 and haven’t received a refund, you should contact your supplier directly to check. It may also help to review old bills to see if multiple standing charges were applied.
When it comes to Good Energy’s final billing failure, again, most affected customers should receive their refund automatically. Ofgem has said Good Energy is contacting all impacted customers directly.
However, if you were a Good Energy pre-payment customer between 2014 and 2023 and never received a final bill or refund after switching, you may have been missed. In that case, it’s worth contacting Good Energy customer service to ask if you’re owed a refund.
Our final thoughts
Ofgem has made it clear it will continue to hold suppliers accountable for historic as well as current failings.
Overcharging on energy bills isn’t just a mistake – it’s a breach of consumer trust. While it’s good news that refunds are being paid, this incident is a reminder that you have the right to fair, transparent billing.
Keep an eye on your statements. And if something looks off – challenge it.
Find out more about compensation you could be due
New opportunities for compensation are always emerging and you could be eligible. Check out some of the group actions you might be able to join on our website.
