iSupply to pay £1.5m for illegally overcharging customers
Energy firm iSupply has been ordered to pay £1.5m after it illegally overcharged 4,400 UK customers on default tariffs and hid it from regulator Ofgem.
The company agreed to pay into Ofgem's voluntary redress fund which distributes money to charities that help those in need and encourage innovation.
A whistleblower approached Ofgem in August 2019 with information that supported the regulator's own investigations and confirmed that iSupply had been billing customers more than the government-imposed default price cap, which came into force in January.
All suppliers are required to charge their default tariff customers at or below the level of the cap to ensure they pay a fair amount for their energy.
Ofgem said that between January to March, iSupply overcharged around 4,400 customers a total of £36,270. Executives at iSupply were aware of the breach in January 2019 but did not inform the regulator. The money has been refunded.
Ofgem has decided not to take formal enforcement action after considering iSupply’s efforts to make amends.
Anthony Pygram, director of conduct and enforcement at Ofgem, said: "The action we have taken against iSupply sends a strong message that all suppliers must treat their customers fairly and quickly address known harm so that customers are protected, or face the consequences.
"Suppliers must charge their default tariff customers at or below the level of the price cap. Senior staff at iSupply knew that they were overcharging default tariff customers yet failed to refund them and report the issue to Ofgem in a timely manner."
(Writing by Frank Prenesti. Editing by Michele Maatouk)