PayPoint agrees to pay £12.5m after Ofgem’s investigation

The payments provider committed to removing exclusivity clauses from its contracts with energy suppliers

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PayPoint will donate £12.5 million to Ofgem’s Energy Industry Voluntary Redress Scheme.

That follows an Ofgem investigation into whether the company that provides services to energy suppliers has breached competition rules.

The regulator has said today it accepted commitments from PayPoint.

Ofgem launched the investigation in August 2017 to examine whether PayPoint had abused a dominant position in the market by using exclusivity clauses in its contracts with energy suppliers and retailers.

As a result of the investigation, the company committed to removing exclusivity clauses from its contracts with energy suppliers for prepayment customers who use its services to top up their meters.

The regulator said: “Ofgem believes that the commitments offered by PayPoint address its competition concerns and will ensure that competition is not distorted.

“Accepting these commitments means that the investigation closes with no decision made on whether competition rules were infringed.”

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