E.On ordered to repay £1.7m to customers after Ofgem finds it guilty of overcharging
Energy company E.ON has been forced to hand over £1.7m to customers after it was caught overcharging.
The company penalised around 94,000 customers who were incorrectly charged exit fees or overcharged following price rises.
The compensation amount agreed with energy regulator Ofgem includes a £300,000 payment to a consumer fund which E.ON runs in partnership with the charity Age UK.
Sarah Harrison, Ofgem's enforcement chief said: "Ofgem has put in place protections for consumers so they can get a fair warning if their supplier puts up prices and time to shop around for a better deal. E.ON has accepted it failed to meet these protections. Today's announcement that E.ON will compensate customers is a positive step by the company to put right their mistakes."
She reported that E.ON has assured Ofgem that all of the consumers affected have now been identified and will be contacted and sent a rebate of an average of £14.83. This includes 8 per cent interest on the amount they were incorrectly charged.
Audrey Gallacher, director of energy at the watchdog Consumer Focus said the compensation payment sends a timely warning to the energy industry that firms must stick to the rules.
"Customers need guarantees that energy suppliers play fair on penalty fees and price rises - particularly given the high level of consumer distrust of the energy market," Ms Gallacher said.
"We want to see new powers for Ofgem to require fines to be paid back to energy customers brought into force as soon as possible, to ensure people can be directly compensated if they lose out when things go wrong."
The watchdog also warned consumers on fixed-term deals that they don't have to pay a termination fee if their supplier raises prices, as long as they tell their supplier they want to switch within fifteen working days of being written to about the increase.
- 1 iOS 8 apps and features: eight iPhone settings you need to look at after you install update
- 2 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 Scotland could still declare independence – even without referendum, says Alex Salmond
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Khorasan: Muhsin al-Fadhli - the man leading a terror group more feared by US officials than Isis
'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
Alicia Keys leaks nude photo 'to create a kinder and more peaceful world'
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...
£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...
Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...