Ofgem secures £1.7 million for consumers following E.ON error

Ofgem has secured a commitment from E.ON to pay back around £1.4 million to approximately 94,000 consumers who were incorrectly charged exit fees or overcharged following price rises.

In addition, E.ON has agreed to make an additional payment of around £300,000 as a goodwill gesture to a consumer fund which they run in partnership with Age UK.

E.ON has made these payments in recognition of failings against licence obligations. Under Ofgem obligations, suppliers have to give customers 30 days notice of a price rise; this allows customers the chance to switch before the increase takes effect. If a customer signals their intention to move supplier within this timeframe they do not incur exit fees or the higher charges, even if the switch occurs after the price rise.

Ofgem has been pursuing this issue with E.ON on customers' behalf. 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 eight percent interest on the amount they were incorrectly charged.

Sarah Harrison, Ofgem's Senior Partner in charge of enforcement 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 and is welcome."