22nd Aug 2014 07:35
LONDON (Alliance News) - UK energy regulator Ofgem Friday said EDF Energy will pay a fine of GBP3 million following an investigation conducted by the regulator into how the company handled consumer complaints.
Ofgem said EDF Energy, the UK utility owned by French group Electrite de France, will pay the GBP3 million to benefit vulnerable customers after it found the company failed to handle consumer complaints efficiently between May 2011 and January 2012.
The investigation was launched after an increase of more than 30% in the number of complaints recorded by EDF Energy amid the migration stages of the company introducing a new IT system in 2011. The regulator found that, between May 2011 and January 2012, EDF Energy did not have appropriate procedures in place to receive, record and process customer complaints in line with complaints handling rules.
"It's now vital for EDF Energy and the industry as a whole to truly put customers first and put adequate resources in place to deal with complaints. Following our reforms, it has never been easier for consumers to switch supplier and therefore those unhappy with the service they receive are able to vote with their feet," said Sarah Harrison, senior partner with responsibility for enforcement at Ofgem.
The fine is the latest in a series imposed by the regulator of late. SSE PLC was fined GBP10.5 million in April 2013 for mis-selling electricity and gas. In October of the same year, ScottishPower Ltd, a unit of Spanish utility Iberdrola SA, was fined GBP8.5 million after an inquiry into its doorstep and telephone selling practices.
This year, British Gas Business, a subsidiary of Centrica PLC, was fined GBP5.6 million in April after it was found to have incorrectly blocked business customers from switching suppliers. In May, E.ON SE, the Germany-based utility, was ordered to pay GBP12 million to its customers after an investigation into mis-selling.
By Sam Unsted; [email protected]; @SamUAtAlliance
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