16th May 2014 13:33
LONDON (Alliance News) - UK energy supplier E.On is to pay out GBP12 million to its customers, after an investigation by the industry regulator Ofgem found that it had broken energy sales rules.
The energy regulator said that E.On has also agreed to compensate any customers that it mis-sold to, including automatic payments to some vulnerable customers, due to poor sales practices carried out by the company between June 2010 and December 2013.
"I am personally absolutely devastated by this, and I'm sure my colleagues across the country are equally devastated," Tony Cocker, E.On's Chief Executive told the BBC on Friday.
E.On is a member of the big six UK energy suppliers, which also includes Centrica PLC-owned British Gas, EDF, Npower, ScottishPower and SSE PLC.
The report by Ofgem found that bad sales practices were carried out by staff selling on the doorstep and by phone. The company has now stopped doorstep selling and cold-calling and Ofgem said it complied fully with the investigation.
Sarah Harrison, senior partner in charge of enforcement at Ofgem said, "The time is right to draw a line under past supplier bad behaviour and truly rebuild trust so consumers are put at the heart of the energy market.
"E.ON has today taken a good step by accepting responsibility for its actions and putting proper redress in place."
http://www.bbc.co.uk/news/business-27433428
By Tom McIvor; [email protected]; @TomMcIvor1
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