REG - OFGEM E.ON UK PLC - E.ON Next pay £14.5m for billing failures
20/11/2024 08:15
For best results when printing this announcement, please click on link below: https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241120:nRST8546Ma&default-theme=true RNS Number : 8546M OFGEM 20 November 2024 PRESS RELEASE WEDNESDAY 20 NOVEMBER 2024 E.ON Next pay £14.5m for prepayment billing failures E.ON Next - part of the E.ON Energy Group - has paid £14.5million after failing to provide final bills and refund customer credit balances to prepayment meter customers. An investigation by the energy regulator, Ofgem, found almost 250,000 prepayment meter customer accounts were affected between February 2021 and September 2023 due to an error within its billing system, which E.ON Next self-reported to Ofgem. 100,000 of the accounts were also in credit. As a result of the issue, prepayment customers who transferred to another supplier or terminated their contract did not receive final bills within six weeks, as required under Ofgem's rules. E.ON Next also subsequently failed to make compensation payments of £30 or £60 as required under the Supplier Guaranteed Standards of Performance (GSoP). Because they did not receive a final bill, affected customers were also unaware of the credit remaining on their accounts, worth £51 on average, and were not provided a refund automatically. As a result of these failures, and in recognition of the impact on its customers, many of which may have faced financial difficulty, E.ON Next has agreed to pay a total of £14.5million in compensation and redress payments, with each customer account receiving on average £144. This includes £4.7million in credit refunds, £6.6million in GSoP compensation payments, and an additional £3.2million in compensation to affected customers. Where it has not been possible to trace a customer, E.ON Next has agreed to make additional payments to the Energy Industry Voluntary Redress Fund, which funds projects and schemes to support energy consumers, particularly those in vulnerable situations. In addition to the compensation and redress package, E.ON Next has also agreed to voluntarily write off debt held by almost 150,000 prepayment meter customers who closed their accounts with the supplier between February 2021 and September 2023. All affected accounts who were able to be identified have been contacted by E.ON Next, and the company has since updated its billing systems and processes to resolve the issue, and ensure final bills are sent to prepayment meter customers. Beth Martin, director for consumer protection and competition at Ofgem, said: "Prepayment meter customers are more likely to face financial difficulties, and during a period where households have been facing a significant cost of living crisis, it's unacceptable that consumers did not receive refunds for credit that was owed to them, or final bills they are entitled to." "E.ON Next has demonstrated an understanding of the significant impact this issue may have had on its customers, and it's encouraging that they self-reported the issue and have worked with us to resolve it, and compensate affected customers to put things right. The action to write off debt will also offer affected households' peace of mind." "We are committed to driving up standards in the retail market so each and every customer gets the service they deserve from their energy company. If we see companies failing to act in the interest of their customers, we can and will take action." ENDS Notes to editor Where it has not been possible to trace a customer, E.ON Next has agreed to make payments to the Energy Industry Voluntary Redress Fund. While the error is a serious matter, the regulator recognises that E.ON Next self-reported the non-compliance, as is required under SLC 5A.1. The commendable extent of their engagement through the compliance process and their past performance and behaviours has also been considered when deciding upon the level of Redress. On licensees · Standard Licence Condition 27.17 (https://www.ofgem.gov.uk/sites/default/files/2023-03/Electricity%20Supply%20Standard%20Consolidated%20Licence%20Conditions%20-%20Current.pdf) , requires suppliers to take all reasonable steps to send a final Bill or statement of account of the Domestic Customer's account within 6 weeks of the supplier transfer or termination of the Domestic Supply Contract. · Guaranteed Standards of Performance (GSOP) regulation 6CA (2020) (https://www.legislation.gov.uk/uksi/2020/116/regulation/6/made) and regulation 8 (2015) (https://www.legislation.gov.uk/uksi/2015/1544/regulation/8/made) , require suppliers to make a standard (compensation) payment of £30 within 10 working days of the supplier's failure to issue a customer a final bill within 6 weeks of the supplier no longer having responsibility for the supply of electricity or gas. If the supplier fails to make a standard payment on time it must make an additional standard payment of £30 within a further 10 working days. · Standard Licence Condition 5A, (https://www.ofgem.gov.uk/sites/default/files/2023-03/Electricity%20Supply%20Standard%20Consolidated%20Licence%20Conditions%20-%20Current.pdf) requires suppliers to be open and cooperative with Ofgem. The licensee must disclose any actions or omissions that give rise to a likelihood of detriment to domestic customers. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . 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