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Energy firms told to refund customers after gas meters mistake Energy firms told to refund customers after gas meters mistake
(35 minutes later)
Energy firms have been ordered to refund thousands of gas customers affected by a meter reading mistake. Energy firms have been ordered to refund thousands of gas customers affected by a meter-reading mistake.
The error - caused by companies confusing measurements from older imperial meters with modern metric ones - is believed to have affected several thousand households.The error - caused by companies confusing measurements from older imperial meters with modern metric ones - is believed to have affected several thousand households.
Some people have been undercharged, but they will not have to pay any extra.
The problem came to light after energy firm E.On discovered that it had overcharged 350 of its customers.The problem came to light after energy firm E.On discovered that it had overcharged 350 of its customers.
They have each been overcharged by 183% - in other words they have paid nearly three times what they should have. One customer paid too much for 15 years, E.On has admitted. Some people have been undercharged, but they will not have to pay any extra.
Those who have paid too much have been overcharged by 183% - in other words they have paid nearly three times what they should have.
One customer paid too much for 15 years, E.On has admitted.
Those who have been undercharged should have paid 65% more.Those who have been undercharged should have paid 65% more.
However, other companies may have been affected as well. Energy firms have been ordered to identify any customers who have been overcharged by Friday this week.However, other companies may have been affected as well. Energy firms have been ordered to identify any customers who have been overcharged by Friday this week.
"We have written to suppliers and asked them to refund affected customers," an Ofgem spokesperson told the BBC."We have written to suppliers and asked them to refund affected customers," an Ofgem spokesperson told the BBC.
CompensationCompensation
Ofgem said the mistake had been caused by human error.Ofgem said the mistake had been caused by human error.
E.On said the 350 customers who had paid too much would be refunded in full, "plus interest and appropriate compensation".E.On said the 350 customers who had paid too much would be refunded in full, "plus interest and appropriate compensation".
Customers themselves do not need to take any action.Customers themselves do not need to take any action.
However details on the difference between cubic and metric meters can be found here.However details on the difference between cubic and metric meters can be found here.
The 250 E.On customers who have been undercharged will not have to pay anything extra.The 250 E.On customers who have been undercharged will not have to pay anything extra.
Trade body Energy UK said firms were "working hard" to address the issue.Trade body Energy UK said firms were "working hard" to address the issue.
The trade association, which represents the major energy companies, said "detailed analysis" showed "an extremely small number of accounts" had been affected.The trade association, which represents the major energy companies, said "detailed analysis" showed "an extremely small number of accounts" had been affected.
"Any customer affected will be contacted shortly by their supplier and where there has been overcharging, a refund will be issued as quickly as possible," it added."Any customer affected will be contacted shortly by their supplier and where there has been overcharging, a refund will be issued as quickly as possible," it added.
The revelation comes just days after Ofgem promised "to deliver a more competitive, fairer energy market for all consumers" as part of a market shake-up aimed at helping consumers save money.The revelation comes just days after Ofgem promised "to deliver a more competitive, fairer energy market for all consumers" as part of a market shake-up aimed at helping consumers save money.
In July, a two-year inquiry into the energy market by the Competition and Markets Authority (CMA) found that 70% of domestic customers using the big six energy suppliers were on expensive default variable tariffs.In July, a two-year inquiry into the energy market by the Competition and Markets Authority (CMA) found that 70% of domestic customers using the big six energy suppliers were on expensive default variable tariffs.
Energy firms have previously been fined for billing errors. Last year, Npower was ordered to pay a record £26m settlement for billing issues affecting more than 500,000 customers.Energy firms have previously been fined for billing errors. Last year, Npower was ordered to pay a record £26m settlement for billing issues affecting more than 500,000 customers.