In 2023, Ofgem collected £77.2 million in fines, customer refunds and compensation from energy companies.
This figure signifies a notable increase from the £27.3 million retrieved in the previous year.
The collected funds encompass fines, customer refunds, compensations and alternative action payments.
A specific portion, amounting to £5 million, was derived from fines imposed on companies found in breach of regulatory standards.
The infractions primarily revolved around unfair billing practices by certain electricity generators, instances of inadequate customer service marked by unacceptable call waiting times and a failure to automatically compensate customers for delays in final billing during the switching process.
Furthermore, Ofgem instructed energy suppliers to give £13 million directly to customers in 2023 to address issues with service quality.
Most of the recovered funds, over £57 million, went to Ofgem’s Energy Redress Fund.
This fund assists charities and community projects in providing energy-related support to vulnerable customers.
Image: Energy Management LLP