A firm which was once the third biggest electricity supplier to homes in Northern Ireland has paid £750,000 to charity following a Utility Regulator investigation.

Electric Ireland's working practices were examined by the watchdog due to allegations it had failed to comply with the terms of its licence to supply electricity.

The investigation looked at issues such as how the firm communicated with domestic customers, how it handled complaints and how it marketed electricity.

The regulator has now closed its three-year investigation after the firm proposed an "alternative resolution" which included payments to five charities, some of which support people who struggle to pay energy bills.

Such a solution is possible under the terms of the Utility Regulator's enforcement policy and is sometimes preferred by firms which could face a potentially large fine if the investigation had been forced to continue.

The chief executive of the Utility Regulator, John French, said: "A core part of our regulatory role is to hold regulated companies to account where they fail to meet the standards required of them.

"Consumers are entitled to clear information, effective complaints handling and the protections set out in each company's licence."

The five charities which benefit from the Electric Ireland settlement are:

They stand to receive £150,000 each under the terms of the deal.

In addition to the charity payments, Electric Ireland has also taken remedial action to address the issues which had been under investigation.

This included adopting new systems to manage its licence obligations and improving its quality assurance controls to mitigate against future problems.

Electric Ireland no longer supplies domestic electricity in Northern Ireland, after it announced it was pulling out of the residential part of the market in May 2024.

At that time it served about 100,000 customers but left the residential sector just two months after the Utility Regulator launched its formal investigation for potential licence breaches.

The firm continues to supply electricity to businesses customers in non-domestic settings in Northern Ireland.

"Although the investigation has now concluded, we will continue to monitor implementation closely and will consider further regulatory action if the commitments are not met," French said.

"Its commitments remain binding despite its exit from the domestic market," he added.

The Utility Regular protects consumer interests in the electricity, gas and water markets in Northern Ireland.

If a utility company does not comply with its enforcement actions it can face fines and can ultimately be stripped of its operating licence.

The latest resolution is the second time in recent years that Electric Ireland has made a large donation to charity following a Utility Regulator investigation.

In October 2020 the firm agreed to pay £250,000 to charities after its treatment of customers in areas such as switching, communications and handling complaints came under scrutiny.

At that time it also agreed to carry out a series of compliance audits in relation to its licence conditions.

In 2023, Electric Ireland apologised over a fault with keypad top-ups which left some customers in Northern Ireland without electricity for more than 24 hours.

It is not clear if that issue was included in the latest investigation.