Ofgem: £10.4m payout to send a “strong message” to overcharging energy suppliers

18 of the UK’s energy suppliers are set to pay £10.4m after failing to maintain tariff prices for customers looking to switch.

Energy regulator Ofgem found that the suppliers - including British Gas, Shell and SSE, did not adhere to price protection rules, which aim to protect a customer’s tariff price when they decide to either switch suppliers or tariffs after a price increase.

It is estimated that over one million customers were overcharged more than £7.2m as a result of the failings.

Anna Rossington, interim director of retail at Ofgem, commented: “Customers should have confidence in switching and not be overcharged when doing so.

“This case sends a strong message to all suppliers that Ofgem will intervene where customers are overcharged and ensure that no supplier benefits from non-compliance.

“It also shows that, where appropriate, Ofgem is prepared to work with suppliers who have failed to comply with the rules, but who are willing to self-report issues and put things right for their customers.”

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