You are here: Home - Household Bills -

Green Star Energy to pay £350,000 over failings for renters

Written by: Emma Lunn
Challenger energy brand failed to update its records for more than 1,800 customers.

Ofgem has fined Green Star Energy £350,000 after it failed to update its records and issue welcome packs to 1,829 new tenants, meaning they were unable to move to cheaper tariffs or access their accounts.

Ofgem was alerted that records of the customers in the private rental market had not been updated on Green Star Energy’s systems after a change of tenancy. This left tenants on deemed contracts – usually the most expensive tariff – unable to access potential savings by switching tariff or supplier.

Customers who tried to contact Green Star Energy also had issues clearing data protection to access their accounts and check the progress on their enquiries.

However, although aware of the failings, Green Star failed to adequately address the issues or self-reported the matter to Ofgem.

As a result the regulator has ordered Green Star Energy to pay each affected customer £60 (a total of £109,740 in compensation) and make a further voluntary contribution of £240,260 to the energy redress fund.

Green Star Energy has now reviewed its systems, and identified and addressed the deficiencies that led to the issue.

Ofgem decided not to take formal enforcement action, taking into account the steps Green Star Energy has taken to address its failings and the redress it has agreed to pay.

A Green Star Energy spokesperson said: “We deeply regret any inconvenience caused as a result of the historic issues in the processing of Tenancy Shop customers’ change of tenancy.

“Although we are disappointed not to have met the high standards we set ourselves in this instance, we are pleased to have worked with Ofgem to resolve this matter and to provide redress to our affected customers.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @YourMoneyUK: Government plans cut to minimum shared ownership stake
  • RT @WeareJust_PR: “Families tend not to talk about money and death. But if we don’t talk about these themes it becomes very hard to make pr…
  • RT @RoyalLondon: Voluntary NI contributions to state pensions have risen - @stevewebb1 hails this as “great news that the message is gettin…

Read previous post:
petrol prices rise
Price of fuel dropped in June

Four months of rising fuel prices came to an end in June with the price of both petrol and diesel...