Ofgem: Reads the riot act to PayPoint
- Ofgem, the energy regulator, has decided to accept commitments from PayPoint and a donation of £12.5 million
- PayPoint provides services to energy suppliers which enable their energy prepayment meter customers
- These retailers are paid a commission for top-up payment transactions made using a PayPoint terminal
- PayPoint then transfers these payments to the relevant energy supplier, in exchange for a transaction fee
- It considered whether PayPoint had abused a dominant position by using exclusivity clauses
- Suspected that PayPoint’s actions distorted competition and consumer choice in this market to the detriment of prepayment energy customers
