Ovo Energy and Good Energy have been ordered to refund customers after regulator Ofgem found the pair had been charging households more than was allowed under its price cap.
Combined the suppliers were issued £4mln worth of fines, with £2.7mln set to be distributed between 18,000 households and £1.25mln placed in Ofgem’s voluntary redress fund.
Ofgem limits the amount energy companies can charge customers per unit of electricity and gas under its price cap, which sat at £3,549 from October to December on an annual basis and £4,279 between January and March, when the firms were found to have over billed.
Good Energy, alongside Octopus and E.ON, was already slammed with fines on Wednesday after failing to compensate customers who were owed money after switching suppliers.
Alongside £8mln worth of fines for the trio, Unite union cast fresh allegations that the UK’s power sector had been profiteering over the past year, claiming household bills sat £1,800 higher than needs be in 2022.
Ovo will refund customers up to £181, and Good Energy £109, following Thursday’s ruling, with each overcharging 10,987 and 6,966 households respectively.
“It is totally unacceptable that […] customers were overcharged, particularly at a time that is already so challenging and stressful for consumers across the UK,” Ofgem retail director Dan Norton said.
“Energy suppliers should hear this loud and clear: we expect suppliers to act with the utmost care and integrity.”
Both issued apologies in response, with Good Energy explaining: "Customers who switched payment method to direct debit were not receiving their discount for doing so."