Uswitch comments on E.ON’s record £12M mis-selling penalty
Ofgem has today announced that E.ON is to pay £12m to 333,000 of its most vulnerable customers following an investigation into mis-selling by the industry regulator.
Tom Lyon, energy expert at Uswitch.com, says: “E.ON’s behaviour is disappointing, particularly given the length of time these poor practices went on for and the fact that they were happening as recently as last December. Trust in the industry is already at an all-time low and this fine will only serve to further increase consumers’ cynicism towards energy suppliers. Our research shows that almost three quarters of consumers would now switch to a small supplier – up from 56% last year – which is clear evidence of the dwindling loyalty amongst big six customers.
“However, a ray of light is that E.ON has engaged positively with Ofgem throughout the process and is committed to putting things right. It is encouraging to see that the £12 million is going directly into the pockets of the most vulnerable customers rather than being taken as a fine. Any customers worried that they have been mis-sold to should call E.ON directly on 0800 0568 497. This is a dedicated helpline they have set up as part of this agreement.
“This fine highlights the importance for consumers to fully research the best energy tariff for their needs before signing up to an energy contract. It will also serve as a warning to small suppliers now entering the market who must learn from the mistakes of the big six and operate in a way that keeps customers at the heart of what they do.”
FOR MORE INFORMATION
Ailene Barr
Phone: 020 3872 5610
Email: ailene.barr@uswitch.com
Twitter: @uswitchPR
Notes to editors
Research referred to below was conducted by YouGov 3rd – 6th February 2014 amongst 2,232 adults with decision-making involvement with energy suppliers. The data is weighted.
In response to: ‘Would you consider switching to a smaller energy supplier outside of the big six (British Gas, EDF Energy, E.ON, npower, ScottishPower and SSE)?’ 72% made up of 11% who have already done so and 61% who would consider it.
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