Good Energy and Ovo Energy to pay £4M in refunds and redress

Ovo Energy and Good Energy have each agreed customer refunds and compensation totalling around £2 million, after failings in applying correct tariffs.
OVO Energy informed the regulator in November that it had applied incorrect tariffs to some customers. It has now refunded and compensated 10,987 customer accounts where it did not apply the Energy Price Guarantee discount, on average refunding £135 to affected customers. The total amount of customer detriment to be refunded is £1,492,917.
In addition, Ovo has paid £498,838 in goodwill payments to affected customers, and a further £10,000 into Ofgem’s voluntary consumer redress fund, which reflects errors provided to Ofgem in response to a mandatory request for information, equating to a total package of £2,001,755.
Good Energy Limited discovered in October lack of a process to adjust tariffs after a customer changes their payment method resulted in an overcharge to 6,966 customers for varying periods of time between January 2019 and January 2023. The company failed to transfer customers from a non-direct debit tariff to a direct debit tariff. Good Energy Limited is to refund and compensate 6,966 customers, the average amount being refunded to affected customers is £56, and the total is £391,650.
In addition, the supplier will pay £1,250,000 to Ofgem’s voluntary redress fund and £368,404 in goodwill payments to affected customers, equating to a total payment of £2,010,054.
Ofgem found that Good Energy Limited had inadequate systems, processes and governance in place to prevent customer overcharging when customers change their payment method, over an extended period. It also repeatedly failed to provide accurate submissions for the mandatory Tariff and Customer Account Request for Information in each price cap period, which is issued to all domestic suppliers.
Good Energy Limited has provided a formal improvement plan, as requested by Ofgem.