Energy giant E.ON has agreed to pay back £650,000 to 1.6million customers after charging them earlier than their direct debit had agreed in December, leaving them out of pocket over Christmas.
The majority of the affected customers were due to pay their bills at the beginning of January this year, but were instead charged on Christmas Eve.
It means some might have unexpectedly dipped into their bank overdrafts or struggled to make other payments over the holiday period.
E.ON will give goodwill payments to compensate customers who were hit with additional bank charges as well as paying £627,312 to Ofgem's energy redress fund which helps vulnerable customers.
Anna Rossington, director of retail at Ofgem, said: "Ofgem expects suppliers to adhere to the terms of contracts they have with customers, in particular the agreed direct debit payment dates.
"This failure is a reminder to suppliers that when making changes to their systems, they need to undertake appropriate checks to avoid any unintended consequences for customers."
She added: "Ofgem is always prepared to work with suppliers who have failed to comply with their obligations, but who have self-reported and are determined to put things right, as E.on has done."
Will Owen, energy expert at Uswitch.com, said: “What looks like the fallout from a technical issue had the unfortunate timing of happening on Christmas Eve, the worst possible time to leave families struggling with out of pocket payments and unforeseen bank charges.
“It’s somewhat reassuring that E.ON noticed the issue themselves and acted quickly to offer goodwill payments to customers who spotted the error to cover any extra expenses they suffered.
“There are likely to be many more customers affected by this error who have yet to get in touch with E.ON for compensation. If you are an E.ON customer, check your bills to see if you were charged early and contact the supplier if you do not hear from them about a goodwill payment.
“It’s important to always keep an eye on anything coming out of your bank account and if you spot something unusual, contact your provider straight away.”
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2021-04-22 07:03:20Z
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