Monday, 29 June 2015
E.ON To Pay Customers £7.75 Million
The Energy Advice Line has urged business and domestic energy consumers to check their bills after a supplier was found to have overcharged some customers.
Julian Morgan, managing director of the price comparison, switching and advice service, said consumers could not automatically assume their energy bills were error-free.
“Mistakes do happen, and it’s important that businesses and households check their energy bills to ensure everything is in order,” Mr Morgan said.
“This can sometimes be difficult because bills are more complex than they should be, and we would like to see further simplification so they are easier to understand.
“But in the interim it is up to consumers to ensure they understand everything they are being charged for and if something doesn’t seem quite right, they need to check with their supplier.”
The Energy Advice Line’s call comes after Ofgem secured £7.75 million from energy supplier E.ON for incorrectly charging exit fees and/or overcharging customers following price rises. This penalty was in addition to around £400,000 E.ON has already paid back to potentially affected customers.
Under Ofgem rules, suppliers have to give domestic customers 30 days’ notice of a price rise so they have the chance to switch supplier before the increase takes effect.
If a customer signals their intention to switch within the 30 days, they do not incur exit fees or the higher charge even if the switch occurs after the price rise.
“These rules imposed by Ofgem are crucial because they give important protection to consumers who want to avoid a price hike,” Mr Morgan said.
“In E.ON’s case, billing errors were made and eventually identified, but it illustrates just how important it is for customers to check their bills and know their rights.
“But they don’t have to do it on their own. Using a reputable and independent switching service like the Energy Advice Line has many advantages, key among them being the help we offer customers to find the cheapest deals and switch.
“But our service doesn’t stop there. We have lots of expertise about energy and billing and we are pleased to help all our customers if they have queries about their bills during the lifetime of a contract.”
The Energy Advice Line is a consumer champion and an independent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.
The service also offers free advice and a contract management service, including alerts to remind business consumers users when their fixed-term energy contracts are about to end.
For further information, visit www.energyadviceline.org.uk