It comes after an Ofgem investigation
Lots of the clients affected have been small companies (Picture: SrdjanPav through Getty Photos)
An power firm can pay £525,000 and its director has agreed to step down for critical and protracted mismanagement that resulted in clients being overcharged, Ofgem stated right this moment. Its investigation found that since 2021, Essex-based Farringdon Power – buying and selling as Champion Power – didn’t have the correct billing programs in place to adequately handle its clients’ accounts and to precisely report their power consumption.
This led to repeated situations the place Farringdon routinely retained advance funds from clients as “Early Termination Charges” regardless of having not equipped any power to those clients. Farringdon additionally didn’t difficulty power payments based mostly on precise meter readings, leading to 159 clients – a lot of which have been small unbiased companies corresponding to takeaways and comfort shops – being overcharged a complete of £347,717.25.
Because of the investigation findings, Farringdon has refunded these clients with an extra £50 compensation cost for every affected buyer.
Ofgem’s investigation decided that Farringdon’s licence breaches have been the results of critical and sustained mismanagement at a time when accountability for day-to-day oversight sat completely with its director.
Following the conclusion of Ofgem’s investigation, Farringdon has agreed to pay £525,000 to Ofgem’s Voluntary Redress Fund – along with the direct refunds and compensation already paid to affected clients. It’ll even be topic to enhanced regulatory oversight, unbiased audits and introduce wide-ranging reforms to its operational and governance constructions.
Lastly, the director will step down from the board of Farringdon Power Restricted in recognition of his involvement within the mismanagement which resulted in these breaches – and pledged to not function a senior supervisor within the enterprise shifting ahead.
Cathryn Scott, Ofgem director for market oversight and enforcement, stated: “This unacceptable remedy of shoppers was a results of critical and sustained mismanagement the place the one plan of action was to take away the director accountable.
“Ofgem is happy that Farringdon has taken the required motion to reimburse affected clients, considerably enhance its processes and cling to our necessities for enhanced common monitoring by the regulator.”
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Ofgem added that Farringdon was beforehand found to be gathering funds it was not entitled to for power it was not offering its clients – this led, in June 2025, to Ofgem imposing a penalty of £214,580, plus £9,096 compensation paid and £177,271 refunded to clients.
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