A major energy supplier is compensating hundreds of thousands of customers after a billing error left many without final statements or refunds. The issue has sparked widespread concern and a significant payout. Are you among those impacted?
Energy Giant Pays £144 to 250,000 Customers After Final Bill Failure—Are You One of Them?
By Chourouk Derkaoui
Published on 20 November 2024 14:44
A UK energy regulator Ofgem investigation has revealed that E.ON Next, part of the E.ON Energy Group, failed to issue final bills and refunds to customers using prepayment meters. This omission impacted nearly a quarter of a million accounts between February 2021 and September 2023.
Billing System Error Affects Refunds
It was reported by E.ON Next on its own initiative that the problem stemmed from an error in the billing system. It appears that customers who changed supplier or terminated their contract did not receive the final invoices within the six-week period required by Ofgem rules.
Therefore, some customers were unaware of the unused credit on their accounts. The investigation revealed that around 100,000 accounts were in credit, with an average of £51 unclaimed.
Voluntary Action to Support Impacted Customers
To rectify the situation, E.ON Next has reached out to affected customers. The company has also taken the following measures:
- Writing off debt: Nearly 150,000 prepayment meter customers who closed accounts during the affected period have had their debts written off.
- Charitable donations: In cases where customers could not be traced, E.ON Next has committed to donating to the Energy Industry Voluntary Redress Fund.
Response From Ofgem
The situation was "unacceptable", said Beth Martin, Ofgem's Director of Consumer Protection and Competition, given the pressure customers were already under from rising household bills. However, she praised E.ON Next for reporting and resolving the problem.
However, this scenario is one of many examples of regulatory failure in the UK energy sector. Since 2020, Ofgem has raised over £400 million through compliance and enforcement work to help households in hardship.
Recent Energy Cases:
- OVO Energy: In September, OVO Energy was fined £378,512 for delays in resolving customer complaints, affecting nearly 1,400 customers, who received an average of £271 in compensation.
- E.ON Next (June 2023): The firm was ordered to pay £5 million due to poor customer service, which impacted more than 500,000 customers.
- Good Energy and OVO (May 2023): Both companies were fined £2.7 million collectively for overcharging thousands of customers after failing to adjust tariffs when payment methods changed.
These incidents underscore ongoing weaknesses in the energy sector’s customer service and billing systems, prompting Ofgem to intensify its regulatory oversight.