Fines and redress payments
When and how much companies have to pay when they break rules in their energy licence.
We protect consumers by making companies that break the rules pay penalties and put things right. We can also make them provide redress by payment or other actions.
Our aim is for companies to pay more when they break licence conditions or regulations than it costs to meet them. We also want customers who have lost out or suffered inconvenience or harm to get compensation if possible.
When we fine companies or require payments to put things right
When a company has broken a licence condition or regulation, we will act.
We can take a number of actions, such as:
- fine a company to penalise them for breaking the rules and to prevent future non-compliance
- require a redress payment to compensate customers when consumers have lost money, suffered harm or inconvenience
- require a redress payment to the voluntary redress fund
Energy industry voluntary redress scheme
We may make a company pay into the voluntary redress scheme as part of our compliance or enforcement action. Examples include when:
- a company cannot identify or trace all customers who have suffered a loss
- a company cannot calculate how much money should be paid to each customer
- individual payments to customers would be so small it would not be worthwhile to make them
Redress fund payments are allocated to energy-related projects in England, Scotland and Wales. We have appointed the Energy Saving Trust to operate the fund. Read guidance on the allocation of redress funds.
Over £150 million was awarded to organisations for more than 700 projects in the scheme's first seven years.
Types of projects include:
- energy advice
- fuel voucher crisis support
- supply of small energy efficient items
- projects that support decarbonisation
Get information about projects that the redress fund has supported.
Organisations can apply for funds on the Energy Saving Trust's website.
Energy company payments for rule breaches
Total amount of fines and redress payments since 2010.
Download total number of fines and redress payments made by companies from 2015.
Data does not include cases that contain sensitive details or low value fines.
If a company does not volunteer to make a payment, we can make them pay. The payment is paid to the Treasury and redress payments go to customers or to the voluntary redress fund.