E.On to pay for Christmas blunder

Energy giant E.On left families out of pocket over the Christmas period, by taking payments on Christmas Eve instead of January.

Ofgem, the energy regulator, explains the firm took money from over 1.6 million customers. This left the customers out of pocket and facing additional bank charges as a direct result of these debits. Those finding themselves out of pocket tried to get hold of E.On but couldn’t.

E.On has paid over £55,000 to customers following the IT error. The company are also being made to pay £627,312 to Ofgem’s energy redress fund. This fund helps support customers who are in vulnerable situations. These include those of pensionable age, those suffering disabilities or long term medical illnesses.

Those who pay E.On by direct debit have money taken each month. This amount is based on meter readings and predictions of the energy they use. This normally results in a see saw motion. The readings go into credit over the summer months and move to ‘pay as you go’ in winter. However, this method has been heavily criticised following direct debits being set too high.

The responsibility is then on the customer to ask for a refund, which can take months.

A festive failure for E.On

Ofgem’s director of retail Anna Rossington, said they expect retailers to strictly follow the terms of the contracts they have with their customers. One of the conditions is the agreement to take direct debits on the agreed date.

Failing to stick to the terms and taking the direct debit out early, left customers struggling. The regulator continued that it is a reminder that it is a suppliers responsibility to make sure their changes don’t have consequences for customers.

E.On agreed to pay the fines. They will continue to make goodwill payments to anyone who has been affected by this ‘IT error’. Any customers affected, and have not yet called E.On, should do it if they want to make a claim for the charges.

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