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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.”

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