Two major energy companies are in the spotlight for overcharging their customers. Both were investigated by industry regulator, Ofgem who found some customers were being charged what they described as an ‘unjustified price premium’.
The issue came to light during an Ofgem review of reforms recently undertaken by the energy market. Ofgem has yet to name the two suppliers in question, but has called for them to provide a detailed explanation fast.
Ofgem’s request for a speedy account is the first part of its process, and should the responses provided by the energy suppliers be inadequate, it would lead to a formal investigation which could result in a fine. It would only be at this latter stage when Ofgem reveals the names of the energy suppliers involved.
Energy suppliers were recently in the news for charging customers varying amounts depending on where they live. Ofgem launched reforms to help combat this so called ‘postcode lottery pricing’.
Ofgem’s senior partner of sustainable development, Sarah Harrison said, ‘We do have concerns over some premiums and have made it clear to the two suppliers concerned that we will take action if the differentials cannot be justified.’
Sources:
http://www.which.co.uk/news/2010/07/two-energy-suppliers-in-charging-probe-219174
http://www.energychoices.co.uk/two-big-six-energy-firms-are-overcharging-customers-010710.html
