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E.On among three companies forced to pay £8mln for failures with energy switching

Published: 14:38 17 May 2023 BST

E.On among three companies forced to pay £8mln for failures with energy switching

E.On has been ordered to pay the bulk of a combined £8mln in compensation for problems when customers switched energy suppliers, with Octopus Energy and Good Energy also hit with smaller sums.

Regulator Ofgem found that the three suppliers either missed or "unduly delayed" mandated compensation payments worth £6.3mln, which were due when suppliers do not provide a final bill within six weeks when a customer switches to another provider.

More than 100,000 customers were affected. 

The largest portion was levied by energy regulator Ofgem on E.On Next, which was ordered to pay a total of £5.5mln to almost 95,000 customers. and another £1.3mln to the Energy Industry Voluntary Redress Scheme (EIVRS), which supports vulnerable consumers.

Octopus Energy paid roughly £750,000 to 19,000 customers and around 350 Good Energy customers received a combined total of £18,000.

Another £400,000 or so was paid by Octopus and Good Energy to the EIVRS fund.

Ofgem said all three have also now updated their billing processes and systems to ensure payments will be made in line with regulations.

Neil Kenward, Director for Strategy at Ofgem, said: “As the energy market starts to recover, we’ll likely see a return to more switching, and this action is a reminder to suppliers that they need to make switching as easy and convenient as possible for their customers, and where they cause undue delay, pay compensation swiftly.” 

 

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