You are here: Home - Household Bills - News -

E.ON to pay back £1.4m in wrongly charged exit fees

0
Written by:
28/11/2012
E.ON is being forced by energy watchdog, Ofgem, to pay back £1.4m that the energy supplier had wrongly charged in exit fees.

Approximately 94,000 consumers were incorrectly charged exit fees or overcharged following price rises. 

On top of the £1.4m that E.On is to pay back, the energy supplier will make an additional £300,000 as a goodwill gesture to a consumer fund which they run in partnership with Age UK.

Audrey Gallacher, Director of Energy at Consumer Focus, said: “We welcome Ofgem acting on evidence that fixed-term deal customers lost out when E.ON incorrectly charged termination fees after price rises. Customers need guarantees that energy suppliers play fair on penalty fees and price rises – particularly given the high level of consumer distrust of the energy market.

“Today’s agreement sends a welcome message to the energy industry that not sticking to the rules has repercussions. It is positive that E.ON worked with the regulator to get this money back to customers who lost out, rather than paying a fine which would go back to the Treasury.”
E.ON is making 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.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2227632-matt-smith2
BLOG: You don’t know what you’ve got till it’s gone

Matt Smith ponders the approaching changes to investment advice

Close