iSupply Energy is to pay £1.5 million after the supplier overcharged around 4,400 of its customers on default tariffs.
Welcoming the payment, Gillian Guy, chief executive of Citizens Advice, said: “We’re pleased to see that iSupply has not only refunded the customers it overcharged, but is also paying this voluntary amount into Ofgem’s redress fund. iSupply has promised to improve the way it’s run to make sure this cannot happen again. Ofgem, as the regulator, must make sure that they keep to their word.
“This is the second time in a year that iSupply has failed to charge customers correctly. It underlines why Ofgem’s proposed stricter regulations for new and existing suppliers should be put into effect as soon as possible.”
The overpayment relates to breaches of the price cap, which applies to 11 million customers on default tariffs and came into force on 1 January 2019. All suppliers are required to charge their default tariff customers at or below the level of the cap but in January to March 2019 iSupply overcharged around 4,400 customers £36,270 and in April to September 25 customers were collectively overcharged by £53. Senior employees at iSupply were aware of the breach in January 2019 but did not report the issue to Ofgem.
Ofgem said a whistleblower had come forward in August 2019 with credible information, supporting Ofgem’s own monitoring and compliance activities on the issue. Ofgem has found that iSupply had insufficient governance and processes in place to prevent and swiftly address such non-compliance. iSupply did not correct customers’ tariffs or issue refunds to those affected in a timely manner.
iSupply has since refunded customers it overcharged and has agreed to pay £1.5 million into Ofgem’s voluntary redress fund for its failings.
Anthony Pygram, director of conduct and enforcement at Ofgem, said: “The action we have taken against iSupply sends a strong message that all suppliers must treat their customers fairly and quickly address known harm so that customers are protected, or face the consequences.”