As many as 1.5 million gas customers that were affected by a pre-paid meter fault dating back to 2007, could receive refunds of as much as £110 by Christmas.
Energy UK said that a fault in the meters calculations meant that all meters installed since 2007 added 2 % to the cost of gas or around 25p extra per top-up. Meters installed after October this year are no affected.
Ofgem called on suppliers to submit timetables by the end of the week showing how they plan to refund customers, prevent this error from occurring again and reconfigure the faulty meters.
“Suppliers must act quickly to resolve the problem in a way that treats customers fairly. We have not ruled out enforcement action,” said Ofgem’s senior partner for markets, Rachel Fletcher.
Energy Uk said that the problem was only noticed in the last two weeks, by ‘an eagle-eyed customer’. Once the extent of the problem was understood , it was then raised with Ofgem.
Energy UK chief executive, Angela Knight, said in a statement: “Suppliers are working hard to roll out a solution for an issue which has affected some pre-payment gas meters. The companies know who is affected and will be getting in touch directly to put the meters right and refund any money owed.
“The suppliers and the wider industry are all very sorry this problem has occurred but are already getting in contact with customers. Customers do not need to do anything, but, if they are concerned, just need to contact their energy company who will be able to help.”