Octopus Energy is issuing a £90 warning to thousands of UK households

Octopus Energy has warned 20,000 customers they face higher bills after using a switching tool. Ofgem has been warned by Octopus that hundreds of households have been moved through automatic switching services, with some unable to return to their original provider.

The report from Octopus Energy accused these firms of taking advantage of falling energy costs and ripping off customers with fees of up to £90. The provider said it received thousands of complaints from customers in March who discovered they had ditched Octopus only after receiving an unexpected bill.

Alexander Stafford, MP for Rother Valley and member of the Energy Security and Net Zero Committee, told The Telegraph: “These firms are clearly acting against the wishes of customers who are powerless to stop these firms tearing them apart.

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“With energy debt at an all-time high, Ofgem cannot continue to sit idly by when the weight of evidence shows it needs to act quickly to protect households.” Kevin Kemp, a builder from Aberdeen, recalled signing up for an automatic switching service but assumed his details had long since been deleted.

He said: “I called the power company and they tried to pressure me into complying. They kept saying “I automatically switched you to a better rate”. Andrew Long, chief executive of Switchcraft, said: “Our mission is to remove the loyalty penalty in the energy market and we strongly believe that healthy competition between suppliers is the best way to keep bills down for all of us.

“In my view, Octopus’ misguided attack on auto-switching may unfairly undermine competition just when wholesale energy prices are falling and we should all be in the market for a better deal.”

An Ofgem spokesman said: “We are grateful to Octopus for bringing this matter to our attention and are taking their findings into account. We expect both suppliers and third-party switching services to act in the best interests of their customers and ensure that they communicate clearly with them before initiating a switch.

“We have also strengthened the rules which mean that when consumers decide to switch their energy supplier, it is a seamless process and they are compensated quickly if it does not go to plan. We will continue to work closely with industry and consumer groups and charities to ensure these rules work to protect consumers in the coming weeks and months.”