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

Green Star Energy failed to update its records and issue welcome packs to 1,829 new tenants. As a result, these customers were unable to move to cheaper tariffs or access their accounts with Green Star Energy. The supplier is to pay £350,000 in compensation to affected customers and to the energy redress fund for its failings. 

  • Over 1,800 tenants were unable to access their Green Star Energy accounts and were unable to access cheaper tariffs 
  • Green Star Energy was made aware of its failings but failed to adequately address the issues or report the matter to Ofgem
  • Green Star Energy has now reviewed its systems, identified and addressed the deficiencies that led to the issue and will pay £350,000 in redress over its failings

Ofgem was alerted that records of customers in the private rental market had not been updated on Green Star Energy’s systems after a change of tenancy. 

The customers did not receive welcome packs including account details. This left tenants on deemed contracts – usually the most expensive tariff – unable to access potential savings by switching tariff and/or supplier. 

Customers who also tried to contact Green Star Energy may not have been able to clear data protection to access their accounts and check the progress on their enquiries.

Ofgem raised the concerns with Green Star Energy and it confirmed the issues raised were valid. Green Star Energy had already been made aware of the issue but had not resolved it, nor had they self-reported the matter to Ofgem.

Since engaging with Ofgem, Green Star Energy has reviewed all accounts and systems, identifying and addressing the problems that led to its records not being updated and welcome packs not being sent.

For its failings, Green Star Energy will 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.  

Ofgem has 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. 

Notes to Editors

  • The decision to close this compliance case has been published
  • SLC 0 requires suppliers to treat customers fairly. Suppliers must ensure that they have customer service arrangements in place which make it easy for a domestic customer to contact them and act promptly and courteously to put things right when the supplier makes a mistake.
  • SLC 7.7 requires suppliers to take reasonable steps to provide customers with the principle terms of their contract and notice that contracts with different terms may be available and of information about how such contracts may be obtain. This is commonly referred to as a ‘Welcome Pack’.
  • For more information about Ofgem’s voluntary redress fund, see: Ofgem appoints Energy Saving Trust to distribute payments from rule-breaking energy companies to charities

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Original article link: https://www.ofgem.gov.uk/publications-and-updates/green-star-energy-pay-350000-over-failings-renters

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