Energy supplier iSupply has been hit with a £1.5m penalty for overcharging customers.
Ofgem said a whistleblower had alerted it to the issue over summer. The regulator said the Vattenfall-owned supplier had overcharged 4,400 customers on default price cap tariffs. It said senior managers were aware of the issue in January but had not reported it to Ofgem and had failed to address the issue or refund customers in a timely manner.
Ofgem said the supplier has since refunded customers, improved governance and agreed to pay £1.5m into the regulator’s voluntary redress fund.
“The action we have taken against iSupply sends a strong message that all suppliers must treat their customers fairly and quickly address known harm so that customers are protected, or face the consequences,” said Ofgem director of conduct and enforcement, Anthony Pygram.
Vattenfall, owned by the Swedish state, acquired iSupply in 2017. Ahead of Ofgem’s decision, CEO Magnus Hall last month suggested the UK retail market is a “mess” and the company considering walking away.
See Ofgem’s enforcement notice here.