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E.ON hit with £7.75m fine for overcharging

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E.ON has been fined millions of pounds for overcharging customers, for the second time.

The Big Six supplier was ordered to pay £7.75 million by Ofgem for overcharging customers following price rises and incorrectly charging exit fees.

Under the regulator’s rules, suppliers have to give customers 30 days’ notice of a price rise, giving them a chance to switch before the increase comes into effect. If a customer wishes to move suppliers within that month, they don’t have to pay exit fees or the higher price even if the switch occurs after the rise.

The firm have already paid back £400,000 to standard and direct debit customers who were affected, but there are still 7,000 customers on pre-payment meters who they hope to refund by the end of April.

Sarah Harrison, Senior Partner in charge of enforcement said: “E.ON’s errors meant customers who took the chance to switch were wrongly charged. It is important that E.ON has repaid potentially affected customers and cooperated with the investigation.

“However it’s absolutely unacceptable that E.ON failed to provide these vital customer protections yet again and this persistent failure is the reason for the high penalty.”

The fine will be given to the non-profit organisation Citizens Advice to offer support to it’s face-to-face energy advice service.

E.ON said in a statement: “The company sincerely apologises to those affected.

“E.ON is committed to ensuring that no one will lose out financially and is pleased that the payment is going to a worthwhile cause that will provide support to those in need.”

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