E.On fined record £12m for mis-selling

[Michael Browne]

Energy giant E.On is to pay a record £12m penalty, following an investigation into mis-selling by the industry regulator.

 

Ofgem said it was the largest penalty paid to date by a UK energy supplier.

Its investigation found "extensive poor sales practices" amongst staff selling on the doorstep and by phone.

 

E.On has apologised to its customers, and has promised to pay compensation to anyone who was mis-sold an energy package.

 

The company has estimated that the bill for compensation payments is likely to be between £3m and £8m, on top of the £12m penalty.

 

http://www.bbc.co.uk/news/business-27433428

 

 

Not to worry though, they'll soon claw that back from their pensioner customers:

 

 

Energy giant E.ON scraps 25% discount for hard-up pensioners despite making £2m a day profit

 

Energy giant E.ON is hitting hard-up pensioners with huge price hikes while raking in profits of £2million a day.

 

Tens of thousands of elderly people face a bill shock after the supplier said it was scrapping a 25% saving for some of its poorest customers.

 

Those affected have been given just six weeks notice before price soar.

http://www.mirror.co.uk/money/city-news/eon-hits-tens-thousands-pensioners-3541842#ixzz31rogFIiT

 

[rebel11]

Some customers will receive £35 each, others will be written too.

[E.ON Company Rep: Malc]

Hi all

 

Thought I’d pop on with a bit of information following this morning’s news.

 

To confirm, following Ofgem’s recent investigation, we’ve reviewed the way we sold energy between June 2010 and December 2013.

 

We were concerned we might have given some of our customers the wrong information when they chose to switch to us. To sort this, we’ll be contacting those customers we believe were affected.

 

These accounts will be reviewed and, if customers are worse off as a result, we’ll be offering compensation to cover any financial loss.

 

If anyone switched to us between June 2010 and December 2013 and think they may have been affected, they can also contact us to have their case reviewed.

 

There’s a dedicated support team dealing with this. Their contact details are on our website under ‘Help and Support.’ The same page has a Compensation Form customers can use if they prefer.

 

Additionally, there’s a section of FAQs that might help. This includes details of how the compensation has been calculated.

 

Hope this is of interest.

 

Malc

[E.ON Company Rep: Malc]

 

 

Not to worry though, they'll soon claw that back from their pensioner customers:

 

 

Energy giant E.ON scraps 25% discount for hard-up pensioners despite making £2m a day profit

 

Energy giant E.ON is hitting hard-up pensioners with huge price hikes while raking in profits of £2million a day.

 

Tens of thousands of elderly people face a bill shock after the supplier said it was scrapping a 25% saving for some of its poorest customers.

 

Those affected have been given just six weeks notice before price soar.

http://www.mirror.co.uk/money/city-news/eon-hits-tens-thousands-pensioners-3541842#ixzz31rogFIiT

 

 

Hi Michael

 

Our Warm Assist Variable tariff ends on 30 June 14. We're writing to all customers affected to let them know what's happening.

 

To lessen the impact of this change, we're giving those customers affected a one off payment of £140. This will be credited to accounts this month.

 

Unless they tell us otherwise, customers on Warm Assist will automatically be put on to our standard tariff, Energy Plan, to cover usage after the change.

 

There aren't any restrictions or tie-ins with Energy Plan and this leaves customers free to switch tariff/supplier at any time without penalty.

 

We do have other tariffs available but these are contracted products with certain conditions that customers might not agree to.

 

For anyone affected, I'd pop the usage in kWh on to one of the comparison sites. This will list all the options both with us and with the other suppliers.

 

Hope this is of interest.

 

Malc

[poppasmurf]

Hi Michael

 

Our Warm Assist Variable tariff ends on 30 June 14. We're writing to all customers affected to let them know what's happening.

 

To lessen the impact of this change, we're giving those customers affected a one off payment of £140. This will be credited to accounts this month.

 

Unless they tell us otherwise, customers on Warm Assist will automatically be put on to our standard tariff, Energy Plan, to cover usage after the change.

 

There aren't any restrictions or tie-ins with Energy Plan and this leaves customers free to switch tariff/supplier at any time without penalty.

 

We do have other tariffs available but these are contracted products with certain conditions that customers might not agree to.

 

For anyone affected, I'd pop the usage in kWh on to one of the comparison sites. This will list all the options both with us and with the other suppliers.

 

Hope this is of interest.

 

Malc

 

Please can you confirm your statement that customers losing this tariff will receive a payment of £140 before the end of this month. And can you confirm that this £140 payment is separate from the warm home discount that is given to vulnerable customers each winter?

 

The letter I had from Eon about losing the cheap tariff made no mention of this £140 payment.

 

EDIT. Just checked my Eon account this evening to find that £140 has been credit today under the name One Off Payment. I am impressed. However, it won't stop me changing supplier in June, so long as the new supplier will include me in the Warm Home Scheme.

 

However, there is no sign of the £35 payment that was promised on the News last week.

Edited May 28, 2014 by poppasmurf

[E.ON Company Rep: Malc]

Hi poppasmurf

 

Glad you've received the £140 I mentioned in an earlier post.

 

Just to confirm, customers whose Warm Assist Variable tariff is ending next month will receive this payment. It's also separate from the Warm Home Discount scheme.

 

Following Ofgem's investigation into our selling practices between June 2010 and December 2013, we've agreed to make an additional payment to many of our vulnerable customers. This includes our Warm Home Discount customers.

 

We started sending letters to our Warm Home Discount customers this week. This is to let them know they'll be receiving this additional payment of £35. They'll receive these letters between now and 2 July 14.

 

The payment will be credited directly to accounts unless a customer has a prepayment meter. These customers will receive a voucher which can be used to top up the meter.

 

I know you're looking to change suppliers but if you don't or there's a delay, we're taking applications for the 2014/15 Warm Home Discount (Broader Group) scheme now. Applications can be made via our website.

 

If you're in the Core Group, though, you'll receive a letter from the Department of Work and Pensions (DWP) to let you know the payment (£140 this year) will automatically be credited to your account.

 

Hope this helps poppasmurf. Let me know if you need any more information as happy to help.

 

Malc

[dx100uk]

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