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Energy firms told to refund customers after gas meters mistake | Energy firms told to refund customers after gas meters mistake |
(about 3 hours later) | |
Some householders have been paying nearly three times too much for their gas, after at least one energy supplier got its maths wrong. | 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 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 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. |
Costly measurement mix-ups | |
The company said that all compensation would be worked out on an individual basis. | The company said that all compensation would be worked out on an individual basis. |
It is thought that those who have been overcharged are people whose imperial meters were replaced with metric meters. | |
However in some cases the supplier may not have altered the records properly. | |
As a result they were charged as if their consumption was measured in cubic feet, rather than cubic meters. | |
Deadline | Deadline |
Some people in the reverse situation have been undercharged, but they will not have to pay any extra. | Some people in the reverse situation have been undercharged, but they will not have to pay any extra. |
E.On has identified 250 customers in that position. They should have paid 65% more than they did. | E.On has identified 250 customers in that position. They should have paid 65% more than they did. |
The regulator, Ofgem, believes that several thousand households may have been affected in total. | The regulator, Ofgem, believes that several thousand households may have been affected in total. |
As a result, all the other energy firms have been ordered to identify any customers who have been overcharged by Friday this week. | As a result, all the other 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 metres can be found here. | However details on the difference between cubic and metric metres can be found here. |
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. |