We’ve recently been engaging with Ofgem regarding compliance issues over which it had significant concerns. With respect to its price cap, we’ve not always fulfilled our obligations to customers as we should have.
Due to insufficient governance and processes, between January and March 2019 we overcharged around 4,400 customers on the default tariff cap for the first Charge Restriction Period, with a total detriment of £36,270. We also overcharged 25 customers on the default tariff cap within the second Charge Restriction Period, April to September 2019, with a total detriment of £53. We corrected all overcharges in October and November 2019.
Senior employees within the company were aware of issues that led to the breach in January 2019 and did not self-report to the regulator in a timely manner. We did not treat customers fairly, as we didn’t correct tariffs or refund what we had overcharged promptly. This put us in breach of SLC28AD and SLC0.
iSupplyEnergy always endeavours to act with our customers’ best interests in mind. Unfortunately, with regards to the price cap, we have fallen short. We recognise the seriousness of these breaches and have agreed to pay £1,500,000 into the Energy Industry Voluntary Redress Scheme. As well as reimbursing affected customers the amount we overcharged, we apologised and paid each customer a further £5 per account as a goodwill gesture.
Since we discovered some customers were on an incorrect tariff, we’ve worked extremely hard to transform our compliance capabilities and make sure the same or similar things can never happen again. We’ve strengthened our compliance capability, growing its skills-base, industry knowledge and experience, as well as giving the team the authority and tools it needs to be effective. We’ve also invested in resource in other key areas of the business and strengthened our leadership team to provide additional support and oversight. This further investment reflects our broader commitment to serving customers and has delivered results that can be seen in improvements to our Citizens Advice ranking and Trustpilot score during the year.
We’re grateful to Ofgem for the way they’ve engaged with us. We have learnt from this process and are now better placed to consistently service all our customers in the right way.