E.ON, one of the country's "Big Six" Energy firms have been fined a record £12m, the largest single penalty to date by the energy regulator Ofgem. This fine comes after an investigation discovered poor phone and door-to-door selling practices. The final bill for E.ON could reach as much as £20m with compensation payments likely to reach £8m added to the imposed £12m penalty.
E.ON's mis-selling is said to have took place over a three-year period between 2010 and 2013. Some customers were sold more expensive products than they were currently on. E.ON failed to correctly train and monitor their staff and third party contractors. This mis-selling has affected 33,000 of E.ON's most vulnerable and poorest customers. Customers who receive the "Warm Home Discount" such as those on low income, the disabled and pensioners will each receive £35.00.
The investigation found that non of E.ON's senior management had directly mis-sold to customers however they had failed to ensure the correct training was delivered and that direct sales staff were following rules. Other failings uncovered in the investigation included poor auditing rules, supplying incorrect information to customers, failure to monitor staff and non-disclosure of key terms prior to contracts being signed.
Ofgem's senior partner Sarah Harrisonn said: "The time is right to draw a line under past supplier bad behaviour and truly rebuild trust so consumers are put at the heart of the energy market. E.ON has today taken a good step by accepting responsibility for its actions and putting proper redress in place."
Tony Cocker E.ON chief executive said, "I'm sorry and we really apologise to all of our customers.