Good Energy fined £150,000 by Ofgem for billing failures affecting prepayment customers

Ofgem investigation uncovers nearly a decade of missed final bills and delayed refunds

Good Energy has been forced to pay out £150,000 in compensation and redress after a major billing error left more than 2,000 prepayment meter customers without timely final bills or credit refunds – some for nearly a decade.

The UK’s energy regulator, Ofgem, announced that 2,284 customers were impacted by a fault in Good Energy’s billing system dating back to 2014. These prepayment customers did not receive their final bills within the required six-week period after switching suppliers or ending their contracts –an obligation energy firms must meet under Ofgem regulations.

The enforcement action includes £55,281 in direct compensation and credit refunds to affected customers, alongside a £94,786 contribution to the voluntary redress fund, which supports vulnerable energy users across the UK. The average refund per customer was around £66.

The issue came to light after another supplier, E.On Next, self-reported a similar billing failure to Ofgem in 2023. This prompted a broader investigation, leading to the discovery of Good Energy’s long-standing error.

Ofgem: Billing failures ‘unacceptable’

Beth Martin, director for consumer protection and competition at Ofgem, criticised the supplier’s performance, particularly during a time when many households are under financial strain.

‘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 them,’ said Martin. ‘Driving up standards for consumers across the board is our top priority, and improving billing accuracy is a key part of this.’

She emphasised that all energy suppliers are expected to maintain robust billing systems and report problems proactively to avoid long-term harm to consumers.

Good Energy responds with apology and system fixes

Good Energy CEO Nigel Pocklington expressed regret over the situation, stating that the company was ‘dismayed’ by the system failure. He said a manual workaround was implemented as soon as the issue was discovered, and the underlying system has since been upgraded to prevent a recurrence. ‘We deeply apologise to all those affected.’ Pocklington said.

‘We have also made every effort to provide due compensation to affected customers. This includes goodwill sums in excess of their potential credit balance plus interest, and the general standards of performance payments all customers who do not receive final statements in time.’

Ofgem’s changing regulatory approach

This enforcement action comes amid a shift in Ofgem’s broader regulatory stance. Last month, Ofgem chief executive Jonathan Brearley stated his intention to be less ‘heavy handed,’ focusing instead on ‘serious cases’ of consumer harm. However, he reaffirmed that energy companies must still go beyond the minimum standards, especially when it comes to compensation and customer service failures.

‘Suppliers need to provide faster redress for issues like incorrect billing or poor smart meter installations,’ said Brearley.

What Good Energy customers should do

Key takeaways:

• Good Energy failed to issue final bills and refunds to 2,284 prepayment meter customers between 2014 and 2023.
• Ofgem ordered £150,067 in redress, including compensation and payment to a support fund.
• Customers affected received an average of £66.
• Ofgem is calling for better billing systems and faster issue reporting across the energy sector.

What to do:

What this means for energy customers: Know your rights on compensation

If your energy supplier fails to meet Ofgem’s minimum service standards, you may be entitled to automatic compensation—typically £30 or more.

When you’re entitled to automatic £30 compensation

• Delayed switch: If you’re not switched to a new energy supplier within 5 working days
• Late final bill: If you don’t receive a final bill within 6 weeks of switching
• Refund delays: If your credit balance isn’t refunded within 10 working days of receiving a final bill or requesting it
• Missed appointments: If your supplier misses a planned appointment without 1 working day’s notice

How compensation is paid

• Payments are typically made automatically to your energy account or bank account.
• If the issue continues or multiple failings occur, you may be entitled to additional compensation.

Learn more

Read our full guide to claiming compensation from energy suppliers for step-by-step advice on what to do if you’ve experienced billing delays, missed appointments, or poor customer service.