Thousands of energy customers to be paid compensation after billing blunder

Thousands of energy customers are set to receive compensation after Good Energy failed to send final bills or refund credit to people using prepayment meters.

The supplier has agreed to pay more than £150,000 in compensation after an investigation by energy regulator Ofgem uncovered failings in its billing system going back as far as 2014.

In total, 2,284 customers have been affected. Most are people who had switched away from Good Energy but didn’t receive a final bill within the required six weeks – and in many cases, they were left out of pocket.

What’s being paid out?

Good Energy will pay:

• £55,281 directly to customers in refunds and compensation
• And £94,786 to the Energy Industry Voluntary Redress Fund, which supports people in vulnerable situations

The average amount each customer will get is £66. Ofgem said more than £64,000 of this was unclaimed customer credit.

What went wrong?

The billing error affected customers over a nine-year period, from 2014 to October 2023. It meant that when people ended their contract or changed supplier, they weren’t issued a final bill, which is a direct breach of Ofgem’s rules.

The problem only came to light after another supplier, E.ON Next, flagged a similar issue with Ofgem last year. A full investigation followed and Good Energy has since fixed the error.

Beth Martin, Ofgem’s director for consumer protection, said: “It’s unacceptable that Good Energy failed to provide refunds of money that was owed to customers, compensation they were due, and final bills they were entitled to.”

She added that energy firms must have proper systems in place and act quickly to report and resolve any issues.

Could you be owed money?

If you had a prepayment meter and left Good Energy between 2014 and 2023, you might be due a refund. Good Energy says affected customers have been contacted, but if you’ve changed address or lost touch, it’s worth checking.

You could also be owed money from other energy suppliers, especially if you didn’t receive a final bill when you switched.

What to do next

• Log into your old energy account or contact the supplier to check for credit
• Ask for a final bill if you never received one
• Update your contact details so suppliers can get in touch