Blog Post

EDF, Igloo Energy, OVO and SO Energy ordered to refund customers over Restricted Meter Infrastructure failures by Ofgem

Richard Simmonds • March 31, 2021

Ofgem has ordered four energy suppliers, EDF, Igloo Energy, OVO and SO Energy to refund customers after they were found to be overcharging their customers with Restricted Meter Infrastructure (RMI).

What’s the RMI?

Restricted meters allow for electricity customers to be charged lower rate for electricity used at off peak times or times where overall demand is lower.

Prior to the introduction of the Standard Licence Condition (SLC) 22G customers on these meters were often unable to switch energy suppliers without replacing the meter first and were often not offered the range of tariffs offered to single rate meters.

Because of this the Licence Condition was introduced that requires all suppliers with more than 50,000 customers must offer relevant tariffs with restricted meters without charging multiple standing charges if the customers have multiple meters.

Under the rules all energy suppliers that fit the requirements must direct RMI customers to relevant tariffs and ensure that any requests for a switch to single rate tariffs is carried out. Additionally, suppliers must treat those customers the same as others on similar tariffs.

The ultimate goal for the sector regarding these customers is to get them onto smart meters which removes the barriers RI meter users have.

Also read: Energy Suppliers under pressure to step up Smart Meter rollout in 2021- How not to alienate customers

Why the refunds?

Following a review, Ofgem discovered that EDF, Igloo Energy, OVO and SO Energy were charging multiple charges to 1,665 customers between 2017 to 2020.

The suppliers had to pay a refund to the customers impacted to the value of £126,947.25 in total.

As well as that, some of the suppliers also paid out compensation of £44,298 and made assurances to the regulator that it will not happen again.

Last August, Bulb energy landed itself in hot water over when 3,800 customers on Restricted Meter Infrastructure (RMI) where there is more than one meter per property were blocked from switching to Bulb as it failed to submit the correct number of meters to their existing suppliers. As a result, the energy supplier paid out £155,000 to the consumers affected.

Many of the consumers on Restricted Meters are the most vulnerable so energy suppliers should also ensure that they are added to the Priority Service Register (PSR).

Also read: Add your Customers to the Priority Service Register with Dyball’s CRM

Using software such as Dyball’s Customer Relationship Manager (CRM) can help reduce the chances of accidentally overcharging customers and allows an energy supplier to add customers quickly and easily to the PSR. For more information contact us.