nergy giant E.On is to pay a record £12m penalty following an investigation into mis-selling by the industry regulator.
Ofgem has carried out a series of mis-selling investigations, and in December imposed a £3.5m penalty on Npower. Ofgem says E.On's penalty is the biggest supplier pay-out to customers, reflecting the extensive rule breaches, both on the doorstep and by telephone. The energy supplier apologised for the "completely unacceptable" failings. E.On will pay around £35 to 333,000 customers who are normally recipients of the Warm Home Discount. It will also write to around 465,000 customers it has identified itself, informing them of how to get in touch to find out whether they were mis-sold to. Ofgem found that E.On had poor sales practices, failed to property train staff, and had insufficient safeguards.
The mis-selling occurred between June 2010 and December 2013. The regulator said that E.On had opportunities to improve its sales practices long before 2013, but its response was inadequate......Read more here