Ofgem has proposed a £1.67m penalty on an energy supplier following issues including serious overcharging of business customers.
The regulator found ten breaches of licence conditions by Hudson Energy Supply UK Ltd (HES) which served up to 1,600 business customers across the UK.
Ofgem’s enforcement team found that HES had failed to ensure appropriate arrangements were in place to achieve compliance with its licence obligations throughout the duration of the relationship with a third party.
Cathryn Scott, Director of Enforcement and Emerging Issues at Ofgem, said: “Through taking this action Ofgem is sending a firm signal to the market that it is not possible to outsource compliance with the licence conditions: the licence holder is responsible for any breaches and any harm caused to its customers.”
Ofgem said HES admitted to all of the breaches, with Shell, who took over the ownership of HES in 2019, having taken appropriate remedial actions to ensure that these failures are not repeated in its business.
Separately, the regulator said it is also launching an investigation into Maxen Power Supply Ltd, focussing on the fair treatment of businesses and the rates they are charged.