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Eon penalised for overcharging customers

Energy giant pays millions for ‘repeated failing’

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Eon was ordered to pay £7.75m to Citizens Advice today as a penalty for overcharging customers who left the energy supplier when it announced price rises.

The energy company incorrectly charged exit fees and billed customers too much after it increased prices in both January 2013 and January 2014, it was announced today.

Energy regulator Ofgem said it imposed the high penalty for Eon’s ‘repeated failing’ on billing rules, which state that customers must not be charged exit fees if they switch within 30 days of being told about a price rise.

Eon was also penalised in November 2012 to the tune of £1.7m for making the same billing errors.

Get the best energy deal for you – check our independent comparison website Which? Switch.

Best and worst energy companies

Eon is not the only energy supplier to flout codes of practice. EDF Energy agreed to pay £3m to Citizens Advice in 2014 after Ofgem found it had breached standards for handling customer complaints.

Our annual satisfaction survey reveals there are big differences between the best and worst energy suppliers, based on their customers’ feedback. As well as rating the ‘big six’ energy suppliers – British Gas, EDF Energy, Eon, Npower, SSE and Scottish Power – we also investigated smaller companies, such as First Utility and Ovo, to find out what their customers really think.

Smaller supplier Ecotricity came out top this year with an impressive customer score of 84%. Npower came bottom, scoring just 35%. 

Find out how energy companies compare on customer service, value for money, bills and complaints – and why Ovo Energy is our first Which? Recommended Provider – in our best and worst energy companies review.

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According to Eon, the majority of affected customers were overcharged by less than £10. The company has said it will refund all 48,000 potentially affected customers by the end of April – so you don’t need to do anything if you’re concerned you have been overcharged.  

The £7.75m paid to Citizens Advice will be used to help provide face-to-face energy advice to vulnerable customers.

We’re campaigning for energy companies to help their customers find the best deal by providing simple pricing and switching. Find out more about our campaign to Fix the Big Six and see how you can get involved.

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