The power supplier E.ON Next has been ordered to pay £5m in compensation to consumers for poor customer services, the energy watchdog for Great Britain has announced.
Ofgem said a review of customer service standards and complaint handling across the sector uncovered “severe weaknesses” at E.ON Next, with customers facing long call-waiting times and a high level of unanswered calls.
More than 500,000 customers may have been affected, according to Ofgem.
The regulator said E.ON Next will pay £4m to those customers most directly affected, working out at £8 each, while it will also pay a further £1m to Ofgem’s voluntary redress fund, which supports vulnerable energy consumers and other innovation and carbon emission reducing investments.
Cathryn Scott, the director for enforcement and emerging issues at Ofgem, said the penalty for E.ON Next “shows Ofgem’s determination to stand up for the rights of consumers and drive up standards”.
She added: “The very least that a customer should expect of their supplier is for them to pick up the phone to them in a timely way.
“The levels of service that we discovered at E.ON Next during the period of review were unacceptable.
“As the energy regulator, our purpose is to protect energy consumers, and this action serves as a reminder to all suppliers that they must ensure that their customers are able to contact them quickly and easily when they need to.
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“This is particularly important during this time of volatile energy prices, when many households are struggling with their bills.”
