Utilita to pay £500,000 for overcharging its prospects

Customers were overcharged by a total of £125,000, which has now been refunded.

This includes around 6,600 prepayment customers, who were collectively overcharged around £22,700 above the prepayment price cap. The energy price cap limits how much suppliers can charge for poor-value tariffs and has now been extended to the end of 2021 – though this is the maximum firms can charge, so it’s likely you could still save by switching to another provider even if you’re paying below it.

Around a further 33,000 customers were charged about £105,000 more than they should have paid for their advertised tariff (though their payments were still below the prepayment cap).

As well as refunding the money that was overcharged, Utilita has agreed it will pay a redress package which includes goodwill payments to affected customers who are still with the firm, payments to customers who missed out on the Warm Home Discount, and a £45,000 payment into Ofgem’s voluntary redress fund. Utilita says it will write to customers who are set to receive extra compensation.

Ofgem says it won’t be taking any further action against Utilita because of the steps it’s taken to report the issue, offer redress to those affected and put measures in place to stop the same thing happening again. 

See our Cheap Prepaid Gas & Electricity guide for more help for prepayment customers, and use our Cheap Energy Club to see if you could switch and save.

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