E.ON to pay £650,000 for early Direct Debit payments

E.ON took Direct Debit payments from 1.6 million customers earlier than agreed.

By Matt Maynard · 22nd April 2021

E.ON is set to pay goodwill payments to those it charged too early, along with paying £627,312 into the energy redress fund. 

Most of the payments were set to be taken in January 2021 but were accidentally taken on 24 December 2020 due to a technical fault. 

E.ON reported the incident to Ofgem immediately and made redress payments totalling £55,039 to customers. Furthermore, E.ON will pay nearly £630,000 into the energy redress fund in acknowledgement of its failure to address underlying system weaknesses. 

Anna Rossington, director of retail at Ofgem, said:

“Ofgem expects suppliers to adhere to the terms of contracts they have with customers, in particular the agreed Direct Debit payment dates. This failure is a reminder to suppliers that when making changes to their systems, they need to undertake appropriate checks to avoid any unintended consequences for customers."

“Ofgem is always prepared to work with suppliers who have failed to comply with their obligations, but who have self-reported and are determined to put things right, as E.ON has done."

Customers who have been negatively affected and haven’t already spoken to E.ON about it, should contact E.ON if they wish to make a claim for any bank charges or other detriment caused by the early direct debit payments."

Source: Ofgem 

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