Octopus Energy to pay £1.5million for prepayment meter billing errors to thousands of customers

The Sun

08-07-2025

THE UK's biggest energy supplier has been forced to pay out £1.5million to customers after a series of billing errors.
Octopus Energy made the payouts to thousands of customers after an investigation by energy regulator Ofgem.
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The regulator found more than 34,000 prepayment meter customers between 2014 and October 2023 didn't get their final bills within six weeks.
Under Ofgem's rules, customers must get their final bills within this timeframe so they know whether they are in credit or debit.
The average amount paid out was £43.
This includes refunds of £231,000 of credit that was remaining on accounts when they were closed, and a further £1.25million in compensation to affected customers.
Octopus has been trying to contact all the customers affected.
Those still with the energy firm have had the payment made directly to their Octopus account.
Others have been sent cheques.
Ofgem has said all customers should receive their compensation by September.
Anyone who can't be contacted will have their money paid into the Energy Industry Voluntary Redress Fund, which funds projects and schemes to support energy customers.
Beth Martin, director for consumer protection and competition at Ofgem, said: "It's important that customers receive final bills in accordance with our rules, so they are aware of any credit remaining on their accounts and can reclaim it.
"This is particularly important for prepayment meter customers who are more likely to be in financial difficulty.
"We are pleased that Octopus has now rectified the error and put things right with its customers, offering both refunds and compensation where it's due.
"We will continue to closely monitor compliance with our billing rules, and drive improvements in the sector so customers can expect the highest standards of service from their energy supplier."