UTILITA Energy has been forced to pay £500,000 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.
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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.
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.”
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