E.ON ordered to refund customers £12m for misselling
Energy giant apologies for ‘unacceptable failings’ and ends cold-calling sales after Ofgem imposes largest ever penalty.
More re than 333,000 customers can expect to receive a payment of around £35, the largest-ever penalty levied by the energy regulatorOfgem
But the final bill for E.ON could be up to £20m, once it has paid out compensation to customers who were mis-sold energy. The energy company expects to pay between £3m-£8m in compensation to 465,000 customers who were mis-sold energy between June 2010 and December 2013, who are in line for an average payment of £67.
The £12m penalty reflects “E.ON’s extensive poor sales practices”, Ofgem said. The regulator said it found no evidence that E.ON’s senior managers had deliberately mis-sold energy to customers, but they failed to ensure that sales staff were trained and followed the rules. As a result, customers were given incorrect information on the doorstep or over the phone and did not get the key terms of a contract before it was signed.
E.ON apologised for the “completely unacceptable” failings. “We are really sorry and want to make it absolutely clear that we’re putting this right,” the chief executive, Tony Cocker, said.
The company had ended doorstep selling and cold calling people in their homes, as part of a complete overhaul of its sales operations, he added.