iSupply Energy is to pay £1.5 million to Ofgem after it was judged to have overcharged around 4,400 of its customers on their default tariff energy bills.
The regulator says the firm “failed to alert the regulator and put things right quickly” after overcharging these customers a collective £36,270 during the first price cap period and 25 customers by a total of £53 in the second price cap period.
The price cap on default tariffs was introduced on 1st January 2019 – Ofgem says despite senior employees at iSupply being aware of breaching the cap in the first month of its introduction, they did not report the issue to Ofgem.
In August 2019 a whistleblower provided the regulator with credible information that iSupply had insufficient governance and processes in place “to prevent and swiftly address non-compliance”.
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: “If a licensee breaches the rules, it quickly needs to tell Ofgem and put things right for its consumers. However, iSupply has admitted it failed to do so in this instance.
“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.”