Thousands of energy customers are in line for compensation after a major billing error left many without final bills or refunds.
The issue, which affected people using prepayment meters, went unnoticed for years and only came to light after a wider industry investigation.
Customers who switched suppliers or ended their contracts may have missed out on money they were owed and many are still unaware.
The problem was linked to a flaw in the billing system of Good Energy, an energy provider that has now been made to pay £150,067 in compensation and redress.
Between 2014 and 2023, a total of 2,284 prepayment meter customers were affected. Under energy rules, suppliers must issue a final bill within six weeks of a customer switching or ending their contract.
Good Energy failed to do so, and in many cases also failed to return credit balances.
Energy bill payers have been forced to pay more in recent years PAThe issue was identified after a separate energy firm, E.On Next, flagged a similar problem to regulator Ofgem.
That prompted a wider investigation, during which Good Energy confirmed it had failed to meet billing requirements for nearly a decade.
As a result, the company has paid out £55,281 in direct refunds and compensation to affected customers, and contributed a further £94,786 to the industry’s voluntary redress fund, which supports vulnerable households.
The average payout per customer stands at £66.
On average, Good Energy customers will receive £66
PABeth Martin, Ofgem’s Director for Consumer Protection and Competition, criticised the company’s failure to follow basic standards.
She said: "At a time when so many households are facing financial difficulty, it’s unacceptable that Good Energy failed to provide refunds of money that was owed to customers, compensation they were due, and final bills they were entitled to."
Martin added that billing accuracy is a key focus for the regulator. "We also expect suppliers to make sure they have robust systems in place to limit the risk of issues like this happening, and to proactively report problems when they arise."
Good Energy said it had since corrected the issue and apologised to those affected. Nigel Pocklington, the firm’s CEO, said: "We were dismayed to find the billing system issue causing these prepayment customers to have not received their final statements and we deeply apologise."
The company said it issued goodwill payments that, in many cases, exceeded the amount owed
GETTY"As soon as the issue was identified we put in place a manual process to ensure it did not continue and have since made changes to make sure it does not happen again," he added.
The company said it issued goodwill payments that, in many cases, exceeded the amount owed, including interest and payments for missing service standards.
The case comes just weeks after Ofgem’s boss, Jonathan Brearley, said the regulator wanted to be less "heavy handed" in its approach to enforcement.
He said future regulation would focus on serious failures, but warned that suppliers must go beyond the "regulatory minimum" — especially in areas like redress and billing.
