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E.ON forced to shell out £1.7m after overcharging customers

John Fitzsimons
by Lovemoney Staff John Fitzsimons on 27 November 2012  |  Comments 7 comments

An average of £14.83 will be paid out to E.ON customers overcharged after price rises.

E.ON forced to shell out £1.7m after overcharging customers

E.ON has been ordered to pay back around £1.4 million to customers who were overcharged following price rises or wrongly charged exit fees.

The energy provider has also agreed to pay an additional £300,000 as a “goodwill gesture” to a consumer fund run by Ofgem and Age UK.

The 94,000 affected customers have been identified and contacted. They can expect an average rebate of £14.83, which includes 8% interest on the amount they were incorrectly charged.

What E.ON did wrong

According to Ofgem rules, suppliers must give their customers 30 days’ notice of a price rise in order that they may move elsewhere before the price rise kicks in.

If the customer tells the supplier they plan to move within this timeframe they should not incur exit fees or higher charges, even if the switch takes place after the price rise kicks in.

However, E.ON failed to follow these rules.

If you’re switching because of a price rise it’s incredibly important to keep these rules in mind and be extra vigilant when checking your energy bill to ensure that you haven’t been overcharged.

Even if you aren’t switching, make sure you’re paying the right amount – as we revealed in Energy companies keep £1.2 billion of our savings, more than half of us are paying more than we should each year, by an average of £80 a customer.

Cashing in

Energy firms are not exactly at their most popular currently, with five of the big six having announced price rises to cash in on the winter weather, despite many boasting impressive profits this year.

If you’re in the market for a new gas and electricity supplier, why not make use of our energy comparison tool?

More on gas and electricity

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The alternatives to the big six energy providers

Ten ways to save on energy

First Utility struggles with customer service

Government green plans to push energy bills up by £95

Energy firms to be forced to put customers onto cheapest deals

Co-operative Energy to cut its electricity bills

Investigation launched into ‘fixed’ gas prices

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Comments (7)

  • sesojgbs
    Love rating 0
    sesojgbs said

    I have the key meter and I did find EON prices high when I first switched. I think I'will return to my previous supplier

    Report on 27 November 2012  |  Love thisLove  0 loves
  • electricblue
    Love rating 769
    electricblue said

    If we based our understanding of wind energy on the opinion of every dreary luddite who happens to notice that one particular array is static at any given time we might as well take advice on snow clearance from someone who lives in the Gobi desert. Wind and wave energy are inexhaustible and generator prices are coming down. Solar power is getting cheaper and more efficient all the time and energy neutral homes are easily achievable. Again, just because someone has a poor solar installation we are expected to take that anecdotal situation as a guide to the norm? Some cars only do 14mpg so all cars must be terrible on fuel, according to this nonsense logic. Other than bearings needing maintenance there is virtually nothing to go wrong with wind turbines and solar panels have been around long enough to know that when properly constructed they have a very long service life.

    Report on 27 November 2012  |  Love thisLove  2 loves

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