Menu
16/05/2014
E.ON To Pay £12m To Vulnerable Customers
E.ON has agreed to pay £12m to vulnerable customers, after Ofgem's investigation found it had broken energy sales rules.
E.ON has also committed to compensating any customer that it mis-sold to, including automatic payments to some vulnerable customers.
The agreed redress package reflects the harm caused by E.ON's extensive poor sales practices carried out between June 2010 and December 2013. Given the large number of contracts signed in this period it is likely a large number of customers were mis-sold to by E.ON and Ofgem took this into account when agreeing the redress package. Ofgem’s investigation found no evidence that E.ON's senior management set out to deliberately mis-sell to customers, but did find that management did not do enough to identify issues or act on problems when discovered.
Ofgem's investigation found that E.ON failed to properly train and monitor both its own staff and those it employed through third party telesales agencies, leading to incorrect information being provided to customers on the doorstep and over the phone, which could have misled customers. The investigation also showed failures in E.ON's management arrangements meant that insufficient attention was paid to ensuring compliance with energy sales rules. E.ON has acknowledged these failings, made considerable changes and improvements to its processes, including ceasing to use the third party agencies involved, and shown good cooperation throughout the investigation. Had this not been the case the penalty would have been higher.
Sarah Harrison, Senior Partner in charge of enforcement said: "Since 2010 Ofgem has imposed nearly £100m in fines and redress on energy companies for various rule breaches, including £39m for mis-selling, and introduced radical new reforms to make the market simpler, clearer and fairer for consumers. The time is right to draw a line under past supplier bad behaviour and truly rebuild trust so consumers are put at the heart of the energy market. E.ON has today taken a good step by accepting responsibility for its actions and putting proper redress in place."
(CD/MH)
E.ON has also committed to compensating any customer that it mis-sold to, including automatic payments to some vulnerable customers.
The agreed redress package reflects the harm caused by E.ON's extensive poor sales practices carried out between June 2010 and December 2013. Given the large number of contracts signed in this period it is likely a large number of customers were mis-sold to by E.ON and Ofgem took this into account when agreeing the redress package. Ofgem’s investigation found no evidence that E.ON's senior management set out to deliberately mis-sell to customers, but did find that management did not do enough to identify issues or act on problems when discovered.
Ofgem's investigation found that E.ON failed to properly train and monitor both its own staff and those it employed through third party telesales agencies, leading to incorrect information being provided to customers on the doorstep and over the phone, which could have misled customers. The investigation also showed failures in E.ON's management arrangements meant that insufficient attention was paid to ensuring compliance with energy sales rules. E.ON has acknowledged these failings, made considerable changes and improvements to its processes, including ceasing to use the third party agencies involved, and shown good cooperation throughout the investigation. Had this not been the case the penalty would have been higher.
Sarah Harrison, Senior Partner in charge of enforcement said: "Since 2010 Ofgem has imposed nearly £100m in fines and redress on energy companies for various rule breaches, including £39m for mis-selling, and introduced radical new reforms to make the market simpler, clearer and fairer for consumers. The time is right to draw a line under past supplier bad behaviour and truly rebuild trust so consumers are put at the heart of the energy market. E.ON has today taken a good step by accepting responsibility for its actions and putting proper redress in place."
(CD/MH)
Related UK National News Stories
Click here for the latest headlines.
02 April 2015
E.On To Pay Additional £7m For Overcharging
E.On, one of the UK's 'Big Six' energy suppliers, is to pay an additional fine of more than £7m for overcharging its customers. The company will have to pay a penalty of £7.75m after incorrectly charging exit fees and/or overcharged its customers, following price increases. The fine is in addition to £400,000 E.
E.On To Pay Additional £7m For Overcharging
E.On, one of the UK's 'Big Six' energy suppliers, is to pay an additional fine of more than £7m for overcharging its customers. The company will have to pay a penalty of £7.75m after incorrectly charging exit fees and/or overcharged its customers, following price increases. The fine is in addition to £400,000 E.
13 January 2015
E.ON To Cut Gas Prices By 3.5%
Energy firm E.ON is to cut its gas prices by 3.5% with immediate effect. Commenting on the move, Tony Cocker, Chief Executive of E.ON UK, said: "Today's 3.
E.ON To Cut Gas Prices By 3.5%
Energy firm E.ON is to cut its gas prices by 3.5% with immediate effect. Commenting on the move, Tony Cocker, Chief Executive of E.ON UK, said: "Today's 3.
05 August 2011
E.ON Increase Prices
E.ON has today announced that it will increase its prices by 11.4% for electricity and 18.1% for gas, with dual fuel customers seeing a rise of 15.2%, effective from 13th September.
E.ON Increase Prices
E.ON has today announced that it will increase its prices by 11.4% for electricity and 18.1% for gas, with dual fuel customers seeing a rise of 15.2%, effective from 13th September.
27 November 2012
E.On Makes £1.7m Compensation Deal
Energy company E.On has agreed to pay £1.7m in compensation, including interest, to overcharged customers. E.On failed to allow customers 94,000 a 30-day window to switch supplier after a price rise. A total of £1.4m is being paid directly to overcharged exit fee customers. The average rebate is valued at £14.83 each.
E.On Makes £1.7m Compensation Deal
Energy company E.On has agreed to pay £1.7m in compensation, including interest, to overcharged customers. E.On failed to allow customers 94,000 a 30-day window to switch supplier after a price rise. A total of £1.4m is being paid directly to overcharged exit fee customers. The average rebate is valued at £14.83 each.
13 January 2011
British Gas Invests For Vulnerable Customers
British Gas have announced that it is making a new investment of £37 million in support for its vulnerable customers. Each customer on British Gas' Essentials social tariff will receive £50 as a credit on their winter bill. Prepayment customers will receive the credit direct to their meter.
British Gas Invests For Vulnerable Customers
British Gas have announced that it is making a new investment of £37 million in support for its vulnerable customers. Each customer on British Gas' Essentials social tariff will receive £50 as a credit on their winter bill. Prepayment customers will receive the credit direct to their meter.
-
Northern Ireland WeatherThis Evening and Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Perhaps a touch of ground frost. Cloud will spread east towards morning. Minimum temperature 2 °C.
