E.on ordered to pay £12m for mis-selling
Following an investigation by the energy regulator Ofgem, Energy giant E.on has not only received a £12m penalty but large compensation penalties which are likely to be between £4m and £8m.
A statement from Ofgem said it was the largest penalty in its history by a UK energy supplier.
Customers were misled by E.on salesman over a three and a half year period, between June 2010 and December 2013. Many customers were astonishingly sold more expensive tariffs than they were previously on with other energy companies. The £12m penalty is expected to be distributed to 333,000 of the firms poorest customers many of whom will receive the Warm Home Discount including disabled people, pensioners and low income families. Each will receive £35 even if they weren't necessarily affected. E.on has also said that they will be writing to each of the 465,000 customers to advise them how to complain if they believe that they were victims.
They can call E.on by telephone on 0800 0568 497 or alternatively complete a compensation form via their website.
E.on's Chief Executive Tony Cocker said that he was 'Devastated' by the findings and that he holds full responsibility however also stating that he would not be resigning. It has now been made clear that E.on have since stopped door to door selling and also very recently cold calling by telephone.
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