How to make sure you’re not being overcharged on energy bills after Ofgem fines Ovo Energy and Good Energy

The first revealed that Ofgem had forced three providers - E.On Next, Octopus Energy and Good Energy - to cough up an average of £50 in compensation to former customers. Not only had these households received a late final bill after switching to other suppliers, but the legally required compensation for these late bills had also been delayed.

The second showed Ovo Energy had been overcharging thousands of households who were meant to be shielded by the energy price guarantee between October 2022 and March 2023. Good Energy had also overcharged thousands of people between January 2019 and October 2022.

There is no suggestion that any of these acts were deliberate and the companies in question have all paid out compensation and apologised, blaming faulty systems for the errors. But their failings have highlighted how important it is to keep track of your meter readings and bills.

While Ofgem has a safety net in place that has kicked in in these two instances, both applied to thousands of customers who were affected by the same systemic issues with their provider’s billing processes. If you’re an unlucky individual who’s slipped through the net in some way, who’s to say that you’ll be guaranteed the same swift redress?

For this reason, I recommend keeping a beady eye on your bills. Start by keeping records of your meter readings - even if you have a smart meter. It is particularly important to do so if you have an analogue meter given your supplier will estimate your usage if you don’t provide them with actual readings - something that can mean you wind up paying more than you should be.

How to check your gas and electricity meter readings

Take a note of your readings between two dates - preferably within your billing period. I usually do mine once a fortnight.

You’ll then need to find out how much your provider charges you for each unit of gas and electricity, as well as what your standing charge is. These figures should be available on your online account or in written correspondence from your provider.

If you multiply the unit prices by the number of units you have used during the period, and multiply the standing charge rate by the number of days you’re measuring, you’ll have a pretty good idea of what your bill should look like at the end of the month.

The final key thing to do is to compare your figures with what the final bill says. If there’s a big discrepancy, you’ll need to get in touch with your supplier to find out why. By approaching them with your evidence, it should be enough for them to credit you what they have overcharged you.

How to pursue a complaint

But, of course, that’s sometimes easier said than done. From frustrating personal experience, I know most businesses will fight hard to avoid paying out.

If this happens to you, what should you do? For starters, be sure to keep records of when you have contacted your supplier, who you spoke to, what they said and the outcome of the conversation.

If you don’t hear anything from the provider and they’ve had several days to rectify the issue, get in touch with them again to find out whether any progress has been made.

Timing is particularly key. Say you haven’t been given a final bill within six weeks of closing your account, or your energy supplier hasn’t resolved your complaint within eight weeks, you will either be due compensation or should have been referred to the Energy Ombudsman.

Hopefully, you will have your issue resolved immediately. But if it drags on, the Ombudsman can make the company in question apologise and/or cough up money. It’s also worth remembering Citizens Advice can support you - whether that’s with drafting a letter of complaint or learning what your rights are. If you’ve been overcharged, these actions should make sure you get the money you’re owed.