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Eon ordered to repay £12m in UK after admitting mis-selling

Eon has been ordered to hand back £12m to customers after the UK energy regulator found the German supplier had breached rules against mis-selling.

18 May 2014

Ofgem, the industry watchdog, said the Eon management had paid “insufficient attention” to energy sales rules and ordered what it called the biggest payout to customers by a UK energy provider.

Ofgem said Eon failed for three years to train and monitor its own staff and those employed through third-party telesales agencies, “leading to incorrect information being provided to customers on the doorstep and over the phone”.

The mis-selling penalty is the latest in a string of settlements between the regulator and the UK’s “big six” energy companies. British Gas, owned by Centrica, was last month told to pay £5.6m in penalties after Ofgem ruled it had unfairly blocked business customers from switching to rivals.

Npower, Scottish Power and EDF have each agreed penalties with the regulator in recent years. The only operator to contest a mis-selling case with Ofgem was SSE, which led to a record £10.5m fine.


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