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E.ON To Pay £7.75m To Citizens Advice Energy Best Deal Extra

Written by at 15:09

If you are a regular reader here at Love Energy Savings, you will have read article galore regarding Ofgem’s probe into the activity of the Big Six Energy suppliers. Although things have quietened down somewhat of late, the watchdog is still working away and E.ON have today been given a significant fine for their price increases since January 2013.

E.ON who provide energy for both domestic and commercial energy customers, have paid £7.75 million to the Citizens Advice Energy Best Deal Extra programme as a result of their price hikes during the aforementioned period. The supplier has also gone on record to assure energy customers that they will be doing all they can to ensure no such situation arises again in the future.

E.ON Quick to Hold Hands Up...

E.ON has accepted that they were wrong to apply increases in price and also termination fees to former home energy customers, who were looking to move supplier following E.ON’s price increase announcements in both 2013 and 2014.

Around 48,000 E.ON customers were adversely effected from their failure to improve their systems and processes, although roughly 85% of these customers have been reimbursed and Ofgem has accepted that it is likely that the amount of customers actually affected could be less. Most customers were overcharged by £10 or less as a result of E.ON’s mistakes.

The powers that be at E.ON, one of the UK’s largest energy suppliers and member of the Big Six, are keen to go on record and take full responsibility for their errors. They realise that this is not the first time that customers have suffered as a result of their mistakes and are doing all they can behind the scenes to ensure that there will never be a repeat.

Independent Audit...

The energy supplier will be carrying out an independent external audit in relation to their breaches and will then look to implement any resulting recommended changes.

The sizeable nature of E.ON’s fine is due to the energy watchdog’s open letter a year ago, in which it stated its intention to further deter suppliers from breaches, with heavier fines. So, the fact that some of E.ON’s breaches took place following this announcement, meant that the supplier needed to be hit with substantial penalties.

No business energy customers have or will be affected by any of the above breaches and domestic customers will be able to look forward to their refunds sooner rather than later. Although these breaches are unacceptable, E.ON’s reaction to the situation has been commendable and their plans to improve their systems going forward should see a fairer market place for home energy customers.

Speak to the Love Energy Team...

If you have a question about your commercial or domestic energy needs, why not get in touch with the Love Energy Savings team? You can call us on 0800 9888 375 or perform a free, no-obligation energy comparison by putting your postcode into the box at the right of this article.

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