Good Energy has been ordered to pay over £150,000 in compensation and redress after a billing system error affected more than 2,000 prepayment meter customers. The error, which persisted from 2014 to October 2023, meant that customers who switched suppliers or ended their contracts did not receive final bills or refunds of their credit within the required six-week period.
The energy regulator Ofgem found that Good Energy failed to comply with its licence conditions, leading to a total payout of £150,067. This includes £55,281 in direct compensation and refunds to customers, with each of the 2,284 affected customers receiving at least £66. An additional £94,786 has been paid into the industry's voluntary redress fund, which supports vulnerable customers.
The issue came to light after E.On Next self-reported a similar error to Ofgem last year, prompting a detailed investigation. Good Energy has since updated its systems to rectify the problem. Beth Martin, Ofgem's director for consumer protection and competition, said: 'At a time when so many households are facing financial difficulty, 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.'
Nigel Pocklington, chief executive of Good Energy, apologised to affected customers, stating: 'We were dismayed to find the billing system issue causing these prepayment customers to have not received their final statements and we deeply apologise to all those affected. We have made every effort to provide due compensation to affected customers, including goodwill sums in excess of their potential credit balance plus interest.'
Ofgem has emphasised the importance of accurate billing and robust systems, with Martin adding: 'Driving up standards for consumers across the board is our top priority, and improving billing accuracy is a key part of this.' The regulator has also signalled a more proportionate approach to enforcement, focusing on serious cases of customer failure.
