Eligible E.on Next customers to receive average £144 after bill errors
by Catherine Addison-Swan · ChronicleLiveNearly a quarter of a million E.on Next customers are set to receive compensation after being affected by billing errors during the height of the cost of living crisis.
The company has agreed to pay out a total of £14.5 million after it failed to provide final bills and refund credit balances to almost 250,000 of its customers on pre-payment meters. Energy watchdog Ofgem said an error in E.on Next's billing system meant that those who ended their contract or moved to another supplier did not receive their final bills within six weeks, as required under the regulator's rules.
E.on Next failed to give compensation payments of £30 or £60 to affected customers at the time, while 100,000 customers were also not made aware of the remaining credit on their accounts – worth £51 on average – and did not receive automatic refunds, the PA news agency reports. Each affected customer is now set to receive £144 on average in compensation.
The £14.5 million being paid out by E.on includes £4.7 million in credit refunds, £6.6 million in compensation payments, and an extra £3.2 million in compensation to affected customers. The firm, which self-reported the billing error, has also agreed to write off debt held by almost 150,000 pre-payment meter customers who closed their accounts during the time of the billing failures.
Beth Martin, director for consumer protection and competition at Ofgem, said: "Pre-payment meter customers are more likely to face financial difficulties, and during a period where households have been facing a significant cost-of-living crisis, it's unacceptable that consumers did not receive refunds for credit that was owed to them, or final bills they are entitled to."
Where E.on was unable to trace affected customers, it has agreed to pay into the Energy Industry Voluntary Redress Fund, which funds projects and schemes to support vulnerable energy consumers. It has also since updated its billing systems to resolve the issue and ensure final bills are sent to pre-payment meter customers, Ofgem said.
Ms Martin added: "E.on Next has demonstrated an understanding of the significant impact this issue may have had on its customers and it’s encouraging that they self-reported the issue and have worked with us to resolve it, and compensate affected customers to put things right. The action to write off debt will also offer affected households peace of mind."
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