Energy supplier that let down private tenants is ordered to pay £350,000

An energy supplier has been fined and ordered to pay £350,000 for failings that affected almost 2,000 private tenants.

Green Star Energy was told that it had not updated its records of customers in the private rented sector.

As a result, when customers moved in they did not receive welcome packs including account details.

This left tenants on deemed contracts – usually the most expensive tariff – and unable to access potential savings by switching.

There were also problems when customers tried to contact Green Star Energy.

Ofgem raised concerns with the provider, which confirmed it was already aware of the issues. However, it had not resolved them nor reported them to Ofgem.

Green Star Energy will pay each of the 1,829 customers affected £60 in compensation, with the remaining £240,260 going to the energy redress fund.

The firm, based in Milton Keynes, is the residential trading name of Hudson Energy Supply.

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