This issue specifically impacted customers with ‘Restricted Meter Infrastructure’ between January 2019 and September 2024, which means they have more than one electricity meter point at their property recording energy usage.

Energy suppliers are allowed to apply multiple standing charges for homes with multiple electricity meters. However, this meant that some customers were erroneously charged more than is allowed under the price cap when combined with unit rates.

After identifying the issue and investigating, Ofgem said the suppliers swiftly rectified the issue and agreed to pay a total of £7m in refunds and compensation to those affected. This includes £5.6m in refunds and almost £1.4m in goodwill payments.

Charlotte Friel, director of retail pricing and systems at Ofgem, said: “Our duty is to protect energy consumers, and we set the price cap for that very reason so customers don’t pay a higher amount for their energy than they should.

“We expect all suppliers to have robust processes in place so they can bill their customers accurately. While it’s clear that on this occasion errors were made, thankfully, the issues were promptly resolved, and customers are being refunded.

“Today’s outcome serves as a reminder to all energy suppliers that they must implement the price cap properly and do their due diligence. It also shows that, where appropriate, Ofgem is prepared to work with suppliers that fail to comply with our rules.”

All 10 suppliers have updated their systems and processes to prevent the error occurring in future. Ofgem will continue to engage with suppliers to ensure that the payment packages are progressed in full, and will continue to closely monitor all suppliers to ensure they implement the price cap properly, and protect their consumers from paying too much for their energy.

The supplier payment breakdown can be found here: 

Ofgem has published a compliance note with further details.