British energy regulator Ofgem has secured a commitment from E.ON to pay back around £1.4 million to approximately 94,000 consumers who were incorrectly charged exit fees or overcharged following price rises. In addition, E.ON has agreed to make an additional payment of around £300,000 as a goodwill gesture to a consumer fund which they run in partnership with Age UK.
E.ON has made these payments in recognition of failings against license obligations. Under Ofgem obligations, suppliers have to give customers 30 days notice of a price rise. This gives customers the chance to switch supplier before the increase takes effect. If a customer signals his/her intention to move supplier within this timeframe he/she does not incur exit fees or the higher charges, even if the switch occurs after the price rise.
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