Ofgem closes compliance engagement with EDF

Ofgem has closed compliance with EDF Energy related to how it charged 27 customers with a restricted meter.

EDF reported that it had overcharged customers due to a technical fault. The energy company reimbursed affected customers at a total of £2,237 and took steps to ensure the technical fault was fully resolved.

Following Ofgem’s action, EDF made a further voluntary goodwill payment of circa £1,000 shared across all affected customers.

The Electricity Supply Standard Licence Conditions require all suppliers (with more than 50,000 customers) to offer relevant tariffs to customers with a restricted meter.

Ofgem said that customers should not have to pay multiple standing charges for a restricted meter where they have requested a single rate tariff.

While the overcharging of customers is a serious matter that must be addressed, Ofgem decided not to require a larger overall package or to take formal enforcement action on this occasion. This is due to the steps EDF took to correct the situation, and put in place measures to ensure this issue will not re-occur.

Suppliers must be vigilant and ensure customers are charged fairly for the energy they use. Ofgem’s Enforcement Guidelines strongly encourage companies to promptly self-report potential breaches that may give rise to material harm to consumers, the market or to Ofgem’s ability to regulate.

A restricted meter allows for electricity customers to be charged lower rates for electricity used at times with reduced overall demand.

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