Farringdon Energy limited: fair treatment and operational capability

Case outcome

Our investigation found that Farringdon Energy Limited broke standard licence conditions (SLCs), including:

• 0A Treating Non-Domestic Customers Fairly
• 4A Operational Capability
• 4C Ongoing Fit and Proper requirements
• 5 Provision of information to the Authority
• 7A Supply to Micro Business Consumers
• 19C Customer supply continuity plans
• 21B Billing based on meter readings
• 21BA Backbilling

As a result of the investigation, Farringdon has agreed to:

• admit that they contravened SLCs 0A, 4A, 4C, 5, 7A, 19C, 21B, and 21BA
• pay £525,000 into Ofgem's voluntary redress fund, in addition to the £214,000 penalty previously paid for the provisional order
• accept enhanced monitoring by Ofgem for a period of 12 months
• undertake two independent audits, one at the start of enhanced monitoring and one at the end, with terms of reference being agreed by Ofgem

The company kept advance payments from customers as "Early Termination Fees" without supplying energy, sent inaccurate bills, and inappropriately back billed customers. The company also failed to provide information to us when asked.

We found that Farringdon Energy Ltd did not have the right processes and procedures in place to treat customers fairly or to bill them correctly and on time.

Responsibility for running the company day-to-day sat entirely with one director, and the investigation found serious and ongoing mismanagement and breaches of the SLCs as a result. Following negotiations, the director accepted that the company had been mismanaged and agreed to step down from the board after acknowledging that they failed the fit and proper requirements. They also agreed not to take a position of Senior Managerial Responsibility or Influence at Farringdon Energy Ltd or any other regulated energy company in the future.

Farringdon fully cooperated with our investigation and has made improvements.

Enforcement description

On 9 May 2024, Ofgem launched an investigation into whether Farringdon Energy Ltd., trading as Champion Energy Ltd., (“Farringdon”), were complying with SLCs 0A (Fair Treatment of Microbusinesses) and 4A (Operational Capability).

Farringdon Energy Ltd. is a UK based non-domestic energy supplier with their registered office in Essex, England.

On 9 May 2024 we also issued a Provisional Order to Farringdon as it appeared that they were contravening, or likely to contravene, SLC 4A.1(a) and 4A.1(b).

On 6 November 2024, the scope of the investigation expanded to include SLCs 4C (Ongoing Fit and Proper Requirement), 5 (Provision of Information to the Authority and Data Retention), 21B (Billing Based on Meter Readings), and 21BA (Back Billing).  Ofgem also proposed a financial penalty on Farringdon requiring it to pay £223,676.00 for breaching SLC 4A, in relation to the Provisional Order.

On 16 June 2025 Ofgem confirmed its proposal to impose a financial penalty on Farringdon, requiring it to pay £214,580.00 for breaching SLC 4A, operational capability. The penalty was in addition to £9,096.00 of goodwill payments made by Farringdon to affected customers.