Watchdog slaps Green Star Energy with £350,000 penalty

Green Star Energy has been ordered to pay £350,000 by the energy watchdog after tenants were hit with higher fees.

Ofgem has slapped Green Star with the penalty after 1,829 tenants were unable to access their accounts with the company and could not receive cheaper tariffs.

The regulator said that Green Star was made aware of its failings, but the energy business failed to adequately address the issue or report it to Ofgem.

Green Star failed to update its record and issue welcome packs to the new tenants at properties it covered, denying them access to cheaper rates.

The supplier must now pay £350,000 in compensation to the customers affected and to the energy fund due to its failings.

Ofgem said it was alerted that the records of customers in the private rental market were not updated, leaving them with higher rates.

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

Ofgem raised its concerns with the business, which said that they were valid, but that it had not solved the issue after previously being made aware of it.

Since the issue was investigated by Ofgem, Green Star has now updated its accounts and systems after a thorough review.

For its failings, Green Star will have to pay each affected customer £60, totalling £109,740 in compensation.

The firm will also make a voluntary contribution of £240,260 to the energy redress fund.

Ofgem has said it will not take any further enforcement action against the firm, due to the compensation and steps it has taken to address the failings.