Green Star Energy is to make payments totalling £350,000 in recompense for failings towards its customers in the rental market.
The supplier failed to update its records and issue welcome packs to 1,829 new tenants. This left tenants on deemed contracts – usually the most expensive tariff and unable to switch tariff or supplier.
Green Star will pay each affected customer £60 in compensation, and make a further voluntary contribution of £240,260 to the energy redress fund. . The customers did not receive welcome packs including account details.
Ofgem said that when it raised the concerns with Green Star Energy the company had already been made aware of the issue but had not resolved it, nor had self-reported to Ofgem.
Ofgem has decided not to take formal enforcement action.