Energy firm ordered to pay £350,000 over failings for renters

An energy supplier has been fined for failings which resulted in customers being unable to move to cheaper tariffs or access their accounts.

Green Star Energy failed to update its records and issue welcome packs to 1,829 new tenants.

The firm has been ordered to pay £350,000 in compensation to affected customers and to the energy redress fund for its failings.

Energy regulator Ofgem was alerted that records of customers in the private rental market had not been updated on Green Star Energy’s systems after a change of tenancy. 

The customers did not receive welcome packs including account details. This left tenants on deemed contracts – usually the most expensive tariff – unable to access potential savings by switching tariff and/or supplier. 

Customers who also tried to contact Green Star Energy may not have been able to clear data protection to access their accounts and check the progress on their enquiries.

Ofgem raised the concerns with Green Star Energy and it confirmed the issues raised were valid. Green Star Energy had already been made aware of the issue but had not resolved it, nor had they self-reported the matter to Ofgem.

Since engaging with Ofgem, Green Star Energy has reviewed all accounts and systems, identifying and addressing the problems that led to its records not being updated and welcome packs not being sent.

For its failings, Green Star Energy will pay each affected customer £60, a total of £109,740 in compensation, and make a further voluntary contribution of £240,260 to the energy redress fund.  

Ofgem has decided not to take formal enforcement action, taking into account the steps Green Star Energy has taken to address its failings and the redress it has agreed to pay. 

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