Energy provider iSupply hit with £1.5m fine after it overcharging thousands of customers
iSupply Energy overcharged around 4,400 of its customers under the new price cap
Energy provider iSupply will pay £1.5million after it overcharged thousands of customers for their energy and kept it from regulator, Ofgem.
The company agreed to pay into Ofgem’s voluntary redress fund which distributes money to charities and encourages innovation.
Thanks to a whisteblower, Ofgem learned in August that iSupply Energy overcharged around 4,400 of its customers more than it is allowed to under the new price cap.
The cap, which came into force in January, meant energy suppliers could not charge customers on a default tariff more than £1,137 per year for average household use.
The initial cap lasted from January to March, at which point it was hiked to £1,254.
However, during the initial period iSupply customers were charged a total of £36,270 too much – an average of around £8 per customer.
In the second price cap period, 25 customers were collectively overcharged by £53.
Monica Collings, co-chief executive of iSupply, was ‘disappointed’ they failed to provide a high-quality service’ during the period.