MSE News: E.on set for £20m payout after mis-selling scandal - are you owed money?

lu_lu_2

My elderly father has received a cheque for £117 in compensation "to apologise for any chance that we treated you unfairly"


My father was "signed up" for the Age UK 3 yr fixed dual fuel tariff by "a very nice young man" who knocked on his door just prior to the abolition of door to door selling.


Eon say that as he is on their Priority Services Register (over 80) they want to make things easier so instead of asking for more details they have sent him the cheque.


I am wondering whether this amount has actually been calculated or is just a "something" in the hope that he will bank the chq & do nothing more.


Has anybody else rec'd a chq like this?

Former_E.ON_Company_Representative:_Malc

poet123 wrote: »

Your company already has all those details as it was a protracted dispute before we reached the deadlock letter stage prior to going to arbitration. Surely, from the case history you can determine if compensation is due.

How is the compensation figure being arrived at?

Hi poet123

Compensation claims relating to the Ofgem investigation are looked after by the dedicated team I mentioned previously. They are the only ones dealing with this and are definitely the people to speak to.

They review each case based on the individual circumstances.

The information I asked for earlier were a suggestion to help speed up the review to maybe save you a bit of time.

As you've already given us these details then don't worry about giving them to us again. This team has full access to your account and will be able to see what's gone before.

If eligible, the calculation will be based on a number of different factors.

These include, the difference between the average dual fuel price for our competitors' standard and non-standard tariffs at the time. This will help us work out how much you might have been worse off by.

It also means we can create an average amount to show all combinations of supplier and tariff.

We've used the average during this period, across our customers, to work out consumption, how many products you may have had with us at the time and how many times you could have been charged a penalty fee from a previous supplier.

After this, we'll add £10 for the inconvenience.

Finally, depending on how long you've been with us, we'll add interest per year or part year (typically this is around 8 per cent).

Just a quick aside poet123. If the dispute you had with us previously wasn't about switching to us between June 2010 and December 2013, then this team isn't the right one. In this case, you'll need to go back to the original complaint handler.

Hope this points you in the right direction. Let me know if you need any more information. Happy to help.

Malc

Former_E.ON_Company_Representative:_Malc

Loobyloose wrote: »

Ok, firstly thank god for MSE,
Grovelling over, I know I had a real issue with Eon for promising me a lower tariff then my monthly amount continually increased.
I made several calls regards this and to be honest got nowhere and moved last year after 3 years with them.
Can anyone advise just what I should be saying or asking for a successful outcome please? :j

Hi Loobyloose

Following Ofgem's investigation into our selling practices, we've set up a special team to deal with subsequent claims for compensation. These are the guys to speak to.

If you switched supplier to us between June 2010 and December 2013 and believe we didn't handle the switch properly, please contact this team.

Contact details are on our website under 'Help and Support.' On the same page there's a Compensation Form you can use if you prefer.

There's some FAQs on this page, too. May help a bit.

To save a bit of time, it'll help if you can tell us the name of your previous supplier and a few details about your arrangement with them.

This includes the tariff name (with or without a Standing Charge), whether Economy 7 or single rate, how you paid them and your usage whilst with them.

An old statement/bill will probably have all the information we need. If you don't have any old bills, another form of correspondence like a welcome letter may do instead.

Also, your account number with us.

These details will help us review your case and, if eligible, sort out the compensation quickly.

Hope this helps Loobyloose. Let me know if you need any more information as will be happy to help.

Malc

Former_E.ON_Company_Representative:_Malc

lu_lu wrote: »

My elderly father has received a cheque for £117 in compensation "to apologise for any chance that we treated you unfairly"


My father was "signed up" for the Age UK 3 yr fixed dual fuel tariff by "a very nice young man" who knocked on his door just prior to the abolition of door to door selling.


Eon say that as he is on their Priority Services Register (over 80) they want to make things easier so instead of asking for more details they have sent him the cheque.


I am wondering whether this amount has actually been calculated or is just a "something" in the hope that he will bank the chq & do nothing more.


Has anybody else rec'd a chq like this?

Hi lu lu

Following the work we've done with Ofgem into the shortcomings in our sales practices between June 2010 and December 2013, we immediately identified a number of customers where it was obvious mistakes had been made.

In these cases, there was enough information on accounts, in our sales records or in call transcripts to be certain we were at fault. As a result, we're not waiting for these customers to claim but are sending out the compensation straightaway.

I suspect your father falls into this category. Where we don't have enough information, though, we need customers who believe they were affected to contact us. We can then fill in the blanks and let them know.

The amount of compensation is calculated based on a number of different factors.

These include, the difference between the average dual fuel price for our competitors' standard and non-standard tariffs at the time. This will help us work out how much your father might have been worse off by.

It also means we can create an average amount to show all combinations of supplier and tariff.

We've used the average during this period, across our customers, to work out consumption, how many products your father may have had with us at the time and how many times he could've been charged a penalty fee from a previous supplier.

After this, we'll add £10 for his inconvenience.

Finally, depending on how long he's been with us, we'll add interest per year or part year (typically this is around 8 per cent).

If there's any doubt about the amount we've sent please ask your father, or yourself if you've authority to discuss his account, to contact the number on the letter. Our advisors will be happy to go through the details.

Just to make you aware, as part of the compensation package we've agreed with Ofgem, we'll be sending a lot of our vulnerable customers an additional payment of around £35. As your father is over 80 and on the Priority Services Register, he may well benefit from this.

If he qualifies he doesn't need to do anything. We'll write to him between now and 2 July 14 to let him know.

Hope this is of interest lu lu. Let me know if you need any more information as will be happy to help.

Malc

Andy750

Hi all, not posted for a while, however I got this letter from E-on saying SORRY! The letter went like this.


In December 2012 we wrote to tell you that our prices were increasing. Shortly after that you told us you were changing supplier. As you contacted us while we were going through a price increase we should have made sure you didn't pay our higher prices before you left.


Unfortunately in your case this didn't happen we're sorry. To compensate for this we will send you a cheque for £5.00 within the next 7 days etc, etc, etc.


My question is: Is this a normal thing that E-on does IE pay a little amount in the hope I don't chase them or is this a standard thing for every customer. Hope that's a bit clear!!

Former_E.ON_Company_Representative:_Malc

Morning Andy750

I've just replied to the separate thread you started on this matter. Please see the link below.

https://forums.moneysavingexpert.com/discussion/4982734

Thanks

Malc

Jani1953

I changed to E-on last November having completed the uSwitch website and was told I would save nearly £668 a year on my household electricity if I changed, and £285 a year on our holiday cottage rental.
I am now in dispute with E-on as they now want us to pay £427 A MONTH for the next six months to bring the figures inline for a zero balance owing by mid-December (on our house electricity supply). If their figures are correct we will end up paying £528 MORE than we were paying before.
This cannot be right surely.
If E-on have mis-sold to people directly, could it be that their useless figures and calculations were also given to a comparison website such as u-Switch???
HELP!!!! I would never have changed to E-on if I had not been promised a reduction in costs.:mad:

Bluebirdman_of_Alcathays

Jani1953 wrote: »

I changed to E-on last November having completed the uSwitch website and was told I would save nearly £668 a year on my household electricity if I changed, and £285 a year on our holiday cottage rental.
I am now in dispute with E-on as they now want us to pay £427 A MONTH for the next six months to bring the figures inline for a zero balance owing by mid-December (on our house electricity supply). If their figures are correct we will end up paying £528 MORE than we were paying before.
This cannot be right surely.
If E-on have mis-sold to people directly, could it be that their useless figures and calculations were also given to a comparison website such as u-Switch???
HELP!!!! I would never have changed to E-on if I had not been promised a reduction in costs.:mad:

Is the unit price and standing charge you're paying now the same as what you agreed to? That's the only way a switching site can have diddled you. Everything else is down to user input - if you've used more than you said you would you'll pay more.

Former_E.ON_Company_Representative:_Malc

Jani1953 wrote: »

I changed to E-on last November having completed the uSwitch website and was told I would save nearly £668 a year on my household electricity if I changed, and £285 a year on our holiday cottage rental.
I am now in dispute with E-on as they now want us to pay £427 A MONTH for the next six months to bring the figures inline for a zero balance owing by mid-December (on our house electricity supply). If their figures are correct we will end up paying £528 MORE than we were paying before.
This cannot be right surely.
If E-on have mis-sold to people directly, could it be that their useless figures and calculations were also given to a comparison website such as u-Switch???
HELP!!!! I would never have changed to E-on if I had not been promised a reduction in costs.:mad:

Hi Jani and welcome to the Forums.

As Bluebirdman says, the results of online quotes depend on the information entered. Did you put in a monetary figure or usage in kWh?

Thought it might help if I give you a bit of information about our payment arrangements.

Monthly payments are based on current prices and usage. If either changes so will the payments.

It's best to use kWh as usage can change depending on circumstances.

Unless on a fixed price tariff, prices can also change and we did have a price increase this January. If you're on our standard variable tariff, this would have had an effect.

From what you've said, it sounds like previous payments were less than usage and the increase is based partly on a debit balance that's built up.

If I'm right, I suspect part of the new monthly amount is to clear this balance. Once this has been cleared, payments can go down to cover the ongoing usage only.

Make sure your bills are based on accurate meter readings. Any estimates used can be re-billed if you let us have actual readings.

There's a handy tool on our website to help you keep on top of payments. It's the Direct Debit Manager. By popping in meter readings, you can see how much you should be paying at any given time.

It lets you make changes too. You can change the monthly payments by up to 20 per cent up or down with readings, or up to 5 per cent up or down without readings. This is particularly useful if your circumstances change.

At each change, we'll let you know how much the account will be in debit/credit by the time of the annual review if the change is confirmed but usage doesn't alter accordingly.

The mis-selling issue you mention concerns customers who switched to us between June 2010 and December 2013. If you spoke to us last November about the switch then might be worth asking the question.

We've a particular team dedicated to looking after this and these are the guys to talk to. Contact details, including a 'Compensation Form,' are on our website under 'Help and Support.'

Hope this is of interest. Let me know if you need any more details as happy to help.

Malc

loinerlufc

I have been waiting a month for a response to my claim for OFT against EON .I got a letter today giving a credit on my account due to being in EON Warmassist which ends this Sunday.After that I want to move but not before I am sent two cheques which have been credited to my account.I had already spoken about being sold EON on the doorstep in 2011.But it appears it took nearly three years to put me on Warm asssist.Now they are claiming that they did nothing wrong.But I was sold it on my doorstep