Ofgem closes compliance engagement with EDF in relation to how it charged some customers with a Restricted Meter
Decision
Publication date
Industry sector
Supply and Retail Market
Ofgem has closed compliance engagement with EDF Energy related to how it charged 27 customers with a Restricted Meter[1]. EDF reported that it had overcharged customers due to a technical fault. EDF reimbursed affected customers at a total of £2,237 and took steps to ensure the technical fault was fully resolved. Following Ofgem’s action, EDF made a further voluntary goodwill payment of circa £1,000 shared across all affected customers.
The Electricity Supply Standard Licence Conditions (specifically SLC 22G.1) require all suppliers (with more than 50,000 customers) to offer relevant tariffs to customers with a restricted meter. Customers should not have to pay multiple standing charges for a restricted meter where they have requested a single rate tariff. We take these matters very seriously and therefore intervened to ensure customers received fair compensation for the error.
While the overcharging of customers is a serious matter that must be addressed, Ofgem decided not to require a larger overall package or to take formal enforcement action on this occasion. This is due to the steps EDF took to correct the situation, and put in place measures to ensure this issue will not re-occur.
Suppliers must be vigilant and ensure customers are charged fairly for the energy they use. Ofgem’s Enforcement Guidelines strongly encourage companies to promptly self-report potential breaches that may give rise to material harm to consumers, the market or to Ofgem’s ability to regulate.
[1] A restricted meter allows for electricity customers to be charged lower rates for electricity used at times with reduced overall demand.