EON overcharges 94,000 customers

SnowMan

http://www.ofgem.gov.uk/Media/PressRel/Documents1/20121127_EON_Press_Release.pdf

EON have admitted to overcharging 94,000 customers. My reading of what happened is that it looks like EON spotted the error and contacted OFGEM, rather than OFGEM noticing it.

EON failed to charge customers the old tarriff rates after they had within 30 days initiated a switch following the announcement of price rises. Instead they charged the new higher rates from the date the increase took effect up to the date the switch away happened (bearing in mind a switch may have taken say 6 weeks to happen).

http://www.bbc.co.uk/news/business-20508430

Link to EON's press release below

http://pressreleases.eon-uk.com/blogs/eonukpressreleases/archive/2012/11/27/1893.aspx

Atidi

All of the consumers affected have now been identified and will be contacted and sent a rebate of an average of £14.83. This includes eight percent interest on the amount they were incorrectly charged.


　
In addition, E.ON has agreed to make an additional payment of around £300,000 as a goodwill gesture to a consumer fund which they run in partnership with Age UK.

:T:j:T:j:T:j:T:j:T:j:T:j:T:j:T:j:T:j:T

footyguy

Atidi wrote: »

All of the consumers affected have now been identified and will be contacted and sent a rebate of an average of £14.83. This includes eight percent interest on the amount they were incorrectly charged.

How much is their typical early exit fee?

That sounds less than most other suppliers charge, especially as it appears to include an element of interest too.

SnowMan

footyguy wrote: »

How much is their typical early exit fee?

That sounds less than most other suppliers charge, especially as it appears to include an element of interest too.

Doesn't appear to be an exit fee rather they failed to keep customers on their old tarriff rates during the time it took to switch.