£250m taken off energy firms.
For breaking the rules.
On 6 August Ofgem said its redress fund had passed £250m. That is money recovered from companies that broke the rules since 2018, paid into projects that have helped over a million customers.
💷 Where the money came from
Fines and voluntary payments from suppliers and networks that fell short. British Gas paid £20m over force fitted prepayment meters. National Grid Electricity Transmission paid £20m.
Since 2020 more than £500m has gone back to consumers through fines, compensation and redress combined.
🧭 Where it went
887 projects funded. Over £60m in fuel vouchers. Energy advice that Ofgem estimates saves recipients £62m a year on bills.
If you are struggling with a bill, this is the money that funds the charities you would be pointed to. It is worth knowing it exists.
🏠 The bigger picture
Energy debt in Great Britain was a record £4.79bn at the last count. Over a million electricity accounts are in arrears with no repayment plan.
Redress helps at the edges. The thing that cuts bills at scale is using less at the expensive hours, and being paid for it.
A quarter of a billion pounds in fines sounds like a lot until you set it against nearly five billion in unpaid bills. The system is good at punishing suppliers. It is worse at preventing the debt.