UK: Energy supplier E.On to pay out �1.4million to exit fees customers

ENERGY supplier E.On is to pay back around �1.4 million to approximately 94,000 customers who were incorrectly charged exit fees or overcharged following price rises, regulator Ofgem has announced.

Ofgem said E.On had also agreed to make an additional payment of around �300,000 to a consumer fund run in partnership with Age UK as a “goodwill gesture”.

The regulator said it had “secured a commitment” from E.On to pay back the money after the supplier recognised it had failed to meet licence obligations relating to the 30-day notice of price rises it is required to give customers.

The 30-day rule gives customers the chance to switch suppliers before the increase takes effect. They do not incur exit fees or the higher charges if they signal their intention to move within this time, even if the switch occurs after the price rise.

Ofgem said it had been assured by E.On that all of the consumers affected had been identified and would be contacted and sent a rebate of an average of �14.83.

The amount includes 8% 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.

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“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.

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