Green Star Energy has been ordered to pay £350,000 after its failings prevented customers from accessing their accounts and switching to cheaper tariffs.
Ofgem said the energy supplier failed to update its records and issue welcome packs to 1,829 new tenants and has therefore ordered Green Star Energy to provide compensation to affected customers and make a contribution to the energy redress fund.
The records of customers in the private rental market had not been updated after a change of tenancy and being unable to access their accounts left them on deemed contracts, which are usually the most expensive tariffs.
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.
The regulator said: “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.”
Green Star Energy said it “deeply regrets” any inconvenience caused.
A spokesperson added: “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.”