Friday, 27 Dec 2024

Energy supplier E.ON ordered to refund 1.6m customers after overcharging them

After nearly two million customers were overcharged due to a direct debit glitch, energy supplier E.ON has been ordered to pay out thousands of pounds.

Energy regulator Ofgem has also ordered the company to pay some £620,000 to the energy redress fund, a organisation that distributes fines from rule-breaking companies and supports at-risk customers.

The error, first reported by The Mirror on Christmas Day, found that over one and a half million customers had affected.

Dozens customers said they were facing Christmas overdrawn in or in debt as a result of the IT glitch.

One single mum was left virtually penniless after being charged £170 without warning.

Another furious customer said on Christmas Eve: "Many thanks to @EONHelp who took the direct debit for my energy bill TODAY when they usually take it on the 1st of the month.

"A lovely Merry Christmas from Ebenezer Eon, because they never actually informed me they were taking payment early!"

E.ON has said that that customers who have raised complaints have already been refunded a total of £55,039.

The supplier said these "goodwill payments" were made to cover any extra charges customers may have experienced due to the technical error.

In a statement from Ofgem, director of retail Anna Rossington said: "Ofgem expects suppliers to adhere to the terms of contracts they have with customers, in particular, the agreed Direct Debit payment dates.

"This failure is a reminder to suppliers that when making changes to their systems, they need to undertake appropriate checks to avoid any unintended consequences for customers.

"Ofgem is always prepared to work with suppliers who have failed to comply with their obligations, but who have self-reported and are determined to put things right, as E.ON has done."

E.ON customers who have been affected and haven't already contacted the company should get in touch straight away.

If you think may be due a refund you can get in touch with E-On by calling 0345 052 0000. Lines are open 8am to 8pm Monday to Friday, and 8am to 6pm on Saturdays.

Only the bill-payer or person registered on the account will be able to discuss any charges.

Make sure you also have details of the extra costs and your account number to hand.

Will Owen, an energy expert at Uswitch, told the Daily Mirror: "There are likely to be many more customers affected by this error who have yet to get in touch with E.ON for compensation.

"If you are an E.ON customer, check your bills to see if you were charged early and contact the supplier if you do not hear from them about a goodwill payment.

"It’s important to always keep an eye on anything coming out of your bank account and if you spot something unusual, contact your provider straight away."

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