Ofgem finds E.ON guilty of overcharging

City A.M. Reporter
BRITAIN’S energy regulator yesterday ordered supplier E.ON UK to repay customers £1.4m for wrong charges it applied after they switched energy provider in 2008 and 2011.

The energy supplier, one of the UK’s so-called big six, also agreed with regulator Ofgem to pay another 300,000 pounds into a consumer fund to help old people in fuel poverty.

Ofgem found E.ON guilty of incorrectly charging customers an exit fee when they switched supplier following price rise announcements.

Energy users who announce their intention to switch supplier following an increase in prices are also exempt from being charged the higher price, even if the switch occurs after the price rise, a rule which Ofgem found E.ON had also breached.

“We are very sorry to have let down some of our former customers and have made clear that we will refund the money plus interest,” said David Bird, customer service director at E.ON UK.

The utility will repay around 94,000 customers an average of £14.83 in January, E.ON 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,” said Sarah Harrison, Ofgem’s senior partner in charge of enforcement.