Ovo and Good Energy customers to get refunds after overcharging

Thousands of Ovo and Good Energy customers are to get a refund after the regulator discovered that the firms had overcharged households.

Ofgem has ordered the energy firms to pay a total £4m, £2.7m of which will be split between 18,000 homes.

The average repayment to affected Ovo customers will be £181 while Good Energy will refund £109.

The regulator said the suppliers had charged people above the rate allowed under the energy price cap.

Dan Norton, deputy director of retail at Ofgem said: "It is totally unacceptable that Good Energy and Ovo Energy customers were overcharged, particularly at a time that is already so challenging and stressful for consumers across the UK."

The remaining £1.25m will be handed over to Ofgem's voluntary redress fund, which aims to help "consumers in a vulnerable situation across the UK".

The regulator said the payment was "in recognition of the suppliers' failure to apply the price protections put in place at the height of the energy crisis".