Hundreds of energy customers are set to be compensated after two companies overcharged their Feed-in-Tariff (FIT) generators.

The regulator said Good Energy and F&S Energy charged customers an “unauthorised administration” fee.

As households struggle to pay their energy bills because of the cost of living crisis, Ofgem has confirmed that £800,000 will be distributed to more than 1,600 affected customers.

FIT customers are the owners of accredited installations involved in renewable and low carbon electricity generation.

The FIT scheme was introduced in 2010 by the government to promote the uptake of renewable and low carbon electricity generation.

Cathryn Scott, Director of Enforcement and Emerging Issues, said: “A priority for Ofgem is reaching net zero at the lowest cost to consumers in both a sustainable and efficient way.

“It is important that those companies partaking in decarbonisation schemes remain compliant and that renewable generation is appropriately incentivised in line with government policy.

“The outcome of this matter sends a clear reminder to suppliers that they must comply with their obligations under the decarbonisation schemes and ensure that FIT customers receive payments they are entitled to for their renewable generation.”

Nigel Pocklington, Chief Executive Officer of Good Energy, said: “Good Energy have been champions of small-scale renewable generation in the UK for decades.

“In fact, the FIT tariff was originally modelled on a scheme Good Energy created to pay smaller renewable generators for the power they produce.

“Our annual Ofgem audit results have consistently reflected our commitment to high levels of service for generator customers. So we were very disappointed that Ofgem consider the admin charges we applied to a less than 1% of customers, which are not typical domestic solar generators, to be non-compliant with the scheme.

“We are no longer applying this charge and have contacted all affected customers to inform them of their refunds.”