Director resigns as energy supplier pays £525,000 for overcharging customers

Publication type: Press release Publication date:

20 March 2026

Topic: Compliance and enforcement, Consumer protection Subtopic: Fines and redress payments Get emails about this page Print this page

Share the page

• A non-domestic energy supplier will pay £525,000 and its director has agreed to resign for serious and persistent mismanagement that led to customers being overcharged, Ofgem has confirmed today.

An Ofgem investigation found that since 2021, Essex-based Farringdon Energy – trading as Champion Energy – did not have the appropriate billing systems in place to properly manage its customers’ accounts and to accurately document their energy use.

This contributed to repeated instances where Farringdon routinely retained advance payments from customers as “Early Termination Fees” despite having not supplied any energy to these customers.

Farringdon also failed to issue energy bills based on actual meter readings resulting in 159 customers – many of which were small independent businesses such as takeaways and convenience stores – being overcharged a total of £347,717.25. As a result of the investigation findings, Farringdon has refunded these customers with an additional £50 compensation payment for each affected customer.

Ofgem’s investigation determined that Farringdon's licence breaches were the result of serious and sustained mismanagement at a time when responsibility for daytoday oversight sat entirely with its director.

Following the conclusion of Ofgem’s investigation, Farringdon has agreed to:

• Pay £525,000 to Ofgem’s Voluntary Redress Fund – in addition to the direct refunds and compensation already paid to affected customers .
• Undergo enhanced regulatory monitoring, independent audits and implement comprehensive reforms to its operational and governance arrangements.
• The director will resign from the board of Farringdon Energy Limited in acknowledgement of his role in the mismanagement that led to these breaches – and committed not to act as a senior manager in the business going forward. Cathryn Scott, Ofgem’ Director for Market Oversight and Enforcement, said:

“This unacceptable treatment of customers was a result of serious and sustained mismanagement where the only course of action was to remove the director responsible.

“Ofgem is satisfied that Farringdon has taken the necessary action to reimburse affected customers, significantly improve its processes and adhere to our requirements for enhanced regular monitoring by the regulator.”

Notes to editors

Farringdon was previously found to be receiving payments it was not entitled to for energy it was not supplying its customers – this resulted, in June 2025, in Ofgem issuing a penalty of £214,580, plus £9,096 compensation paid and £177,271 refunded to customers.

Get emails about this page Print this page

Share the page