Utilita Energy to pay £500,000 in compensation for overcharging pre-payment customers

UTILITA Energy has been forced to pay £500,000 in compensation for overcharging pre-payment customers.

After an investigation by Ofgem, the regulator found that the energy firm overcharged almost 40,000 customers by over £125,000.

Utilita Energy has been forced to pay £500,000 for overcharging pre-payment customersCredit: Alamy

Around 6,600 prepayment customers were overcharged by around £22,700 above the prepayment price cap.

While 33,000 customers were overcharged a collective £105,000 above the amount they should have paid under their advertised tariff, but below the prepayment cap.

Suppliers can’t charge prepayment meter customers more than the level of the cap, which ensures they pay a fair price for their energy.

The price cap for pre-payment customers is currently set at £1,070 a year.

How to save on your energy bills

SWITCHING energy providers can sound like hassle – but fortunately it’s pretty straight forward to change supplier – and save lots of cash.

Shop around – If you’re on an SVT deal you are likely throwing away more than £300 a year. Use a comparion site such as MoneySuperMarket.com, uSwitch or EnergyHelpline.com to see what deals are available to you.

The cheapest deals are usually found online and are fixed deals – meaning you’ll pay a fixed amount usually for 12 months.

2. Switch – When you’ve found one, all you have to do is contact the new supplier.

It helps to have the following information – which you can find on your bill – to hand to give the new supplier.

Your postcode
Name of your existing supplier
Name of your existing deal and how much you pay
An up-to-date meter reading

It will then notify your current supplier and begin the switch.

It should take no longer than three weeks to complete the switch and your supply won’t be interrupted in that time.

Utilita has already refunded all affected customers in full, and agreed to pay £500,000 in compensation.

Under the compensation package, Utilita will make a £10 goodwill payment to all existing customers who were overcharged.

If a customer is on the Priority Service Register, this payment increases to £15.

Utility will also make a £140 payment to the 900 customers affected who applied for the Warm Home Discount but were unsuccessful.

Utilita first self-reported to Ofgem that it had mistakenly overcharged its customers between May 2019 and September 2019.

But after opening an investigation, Ofgem found the firm had actually overcharged some customers between July 2018 and September 2019.

Cathryn Scott, Ofgem director of enforcement and emerging issues, said: “Ofgem closely monitors suppliers’ compliance with the price cap, which ensures consumers pay a fair price for their energy.

“This case sends a message to all suppliers that Ofgem will intervene if they charge customers above the level of the cap or above advertised tariffs.

“It also shows that, where appropriate, Ofgem is prepared to work with suppliers who have failed to comply with their obligations, but who have self-reported and are willing put things right quickly.”

The Sun has contacted Utilita for comment.

Sun top tips on how you can save money on your energy bills

This post first appeared on thesun.co.uk