A business energy supplier has been forced to pay £525,000 and remove its director after a string of failures that left customers overcharged.
Ofgem said its investigation into Essex-based Farringdon Energy, trading as Champion Energy, uncovered “serious and sustained mismanagement” stretching back to 2021, with basic billing systems not fit for purpose.
The regulator found the company routinely kept advance payments as early termination fees, despite not supplying any energy, while also issuing inaccurate bills that failed to reflect actual meter readings.
In total, 159 customers – many of them small businesses including takeaways and convenience stores – were overcharged £347,717.
Those customers have now been refunded and given an additional £50 compensation payment each.
The £525,000 payment will go into Ofgem’s voluntary redress fund on top of those repayments.
The case has also triggered governance changes, with the director agreeing to step down and not return to a senior management role within the business.
Farringdon will now face enhanced regulatory monitoring, independent audits and a requirement to overhaul its systems and controls.
Cathryn Scott from the regulator said: “This unacceptable treatment of customers was a result of serious and sustained mismanagement… the only course of action was to remove the director responsible.”
Ofgem said it is satisfied the company has now reimbursed customers and taken steps to improve its processes.
The case is the latest reminder of how smaller suppliers can fall short on basic compliance, particularly in the non-domestic market where oversight has historically been weaker.
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