MSE News: Three energy firms pay £8m for compensation failures over late final bills

MSE_Andrew

E.on Next, Good Energy and Octopus Energy have paid £8 million, including over £6 million in compensation to customers, after failing to make compensation payments on time, which are due under the regulator's rules if a supplier does not provide a final bill within six weeks of a consumer switching away.

Read the full story:
'Three energy firms pay £8m for compensation failures over late final bills, including £60 each to 100,000+ customers – what you need to know'

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Chrysalis

Seems lacking details, is there a fine in that 8 million somewhere?

Have they already paid the compensation or have just been ordered to?

Of course this 8 million will be recovered via bills, so its in affect a fine on customers.

superkoopauk

Chrysalis said:

Seems lacking details, is there a fine in that 8 million somewhere?

Have they already paid the compensation or have just been ordered to?

Of course this 8 million will be recovered via bills, so its in affect a fine on customers.

No fine as far as I can see - just money that should have been paid to customers will now be paid

How is the last sentence true - bills are governed by the price cap which doesn't include an allowance for standards of service payments.  Those failure payments come straight out of energy company profits,

MWT

Chrysalis said:

Seems lacking details, is there a fine in that 8 million somewhere?

There is a donation of £1.7m into the Ofgem Voluntary Redress Fund which supports various energy charities.

Also for further context, the split in that total number was a bit one-sided...

• E.on Next – £5.5 million to almost 95,000 customers 
• Octopus Energy – £750,000 to about 19,000 customers 
• Good Energy – £18,000 to almost 350 custome

bristolleedsfan

MWT said:

Chrysalis said:

Seems lacking details, is there a fine in that 8 million somewhere?

There is a donation of £1.7m into the Ofgem Voluntary Redress Fund which supports various energy charities.

Also for further context, the split in that total number was a bit one-sided...

• E.on Next – £5.5 million to almost 95,000 customers 
• Octopus Energy – £750,000 to about 19,000 customers 
• Good Energy – £18,000 to almost 350 custome

On the face of it would appear all three suppliers were using Octopus Kraken billing system during period referred to, E.on Next  merely might have had more switches out.

"According to Ofgem, the problems occurred "because the suppliers' billing process and systems were not set up to deliver" the payments "in line with the time frames set out by the regulations"

TheElectricCow

I'd suggest it's probably more than just the "billing systems" at fault, when I switched away from Eon Next they failed to refund my credit balance within the deadline and I immediately contacted them to make them aware of this. I also thoroughly explained the compensation requirements (£30) for breaching the relevant "guaranteed standard", although the person I was speaking to seemed fairly clueless on the matter and I spent most of my time explaining Ofgem's rules to them.

After pressing the matter further, they stated that they would not discuss any compensation until my original balance had been refunded, and I naturally agreed to this. By the time they were finally ready to put some money on the table, they had only about 2 hours to make a payment before a second breach would occur, and they insisted that the money must be sent by cheque (which would obviously not be delivered in 2 hours, but thankfully Ofgem does cover this somewhere and the rules state a payment by cheque must be made much sooner than that). In any case, I was then owed £60 instead of the original £30 for a missed compensation payment.

Interestingly, they did initially offer a "goodwill payment" for the poor service I'd received of £20 along with the first required £30. They quickly withdrew this gesture when I informed them for at least the third time I was actually owed a compulsory £60. It should be noted that if the customer agrees to a lesser amount to resolve a standards breach they cannot go on to claim the automatic compensation payments.

EmmaH999

I moved to a new rental property in Oct 22. By February this year Ovo hadn't set me up an account to take over existing supply. I contacted by email and to date have had no reply. 

Fed up of waiting, at the end of Feb I switched supplier only to be hit with a huge bill from Ovo (£390) with demand for payment within 14 days. I've since contacted again - both emailing customer services and complaints and still no reply to any of my emails.  

Meanwhile I've been bombarded with emails, texts and letters demanding payment. The latest now states I owe £123. No explanation for the £267 drop. 

Seeing this article I wonder whether the drop may be compensatory but I have no way of knowing given their diabolical communication. How can a supplier fail to move the supply to a new customer for 5 months and then suddenly decide to wake up because the customer moved. 

One for Martin Lewis perhaps? 

For now, I continue to wait. 

Gerry1

@EmmaH999 Unfortunately you haven't done things correctly.  You should have registered with Ovo (preferably setting up a Direct Debit) and sent opening meter readings.  You would then be free to switch supplier(s).  Unfortunately Ovo are not known for brilliant customer service.

If you didn't read the meters yourself when you took possession you may be paying for use during a void period or by the previous tenant.

Always read the meters yourself, never let a lettings agent or building manager do it for you.

KxMx

British Gas were so quick to bill me after I left they estimated a few units on top of my SM readings, rather than wait for the agreed figure from new supplier! 

Alnat1

KxMx said:

British Gas were so quick to bill me after I left they estimated a few units on top of my SM readings, rather than wait for the agreed figure from new supplier! 

So long as both suppliers use the same readings it doesn't really make much difference as both suppliers will be charging a very similar price. The new supplier will only bill for units used once the meter passes the reading used by the old supplier.

lagib

I have just received a cheque for £43 from British Gas who was never my provider. They said it was from a previous provider but did not specify which. I settled with all previous providers who mostly owed me money so no idea why I received this bonus. I suspected a scam of some sort but the cheque was valid and I cashed it at my bank. Nice to receive rather than have to pay out more and more for less and less which is the current trend.