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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) | |
Some householders have been paying nearly three times too much for their gas, after at least one energy supplier got its maths wrong. | |
The error - caused by mixing up measurements from older imperial meters with modern metric ones - is thought to have affected thousands of people. | |
The regulator has ordered gas suppliers to refund any affected customers. | |
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. |
One customer paid too much for 15 years, E.On has admitted. | 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 been undercharged should have paid 65% more. | Those who have been undercharged should have paid 65% more. |
The regulator, Ofgem, believes that several thousand households may have been affected in total. | |
As a result, 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. |
Compensation | Compensation |
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. |
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. |