E.on: Fined £12m for lying
E.on had to stop trying to kill the nation's pensioners to receive the news that they were being fined £12m for mis-selling to vulnerable customers.
Ofgem said an investigation found that E.on broke rules on energy sales over a 3-year period, which is part of the reason they've been making £2m profit A DAY. That £12m fine doesn't look like it'll bother E.on now, what with them being terrifyingly wealthy.
This fine is looking squarely at E.on's widespread sales practices that ended up misleading customers between June 2010 and December 2013.
Ofgem added that E.on failed to correctly train and monitor their staff and those they hired through third party telesales agencies.
There's going to be some compensation for customers who get the Warm Home discount, who we wrote about yesterday. E.on will pay around £35 to 333,000 of their customers who normally receive the deal. Of course, E.on can't be singled out here because all the energy companies have been at it. SSE were fined £10.5m for mis-selling and Ofgem said that British Gas have been overcharging everyone for half a decade.
Since 2010, Ofgem have dished out £100m in fines, with £39m of that just for companies who mis-sold. Looks like the energy companies are happy to take the fines while they make more money by being shady.
E.on have set up a dedicated hotline which you can call on 0800 0568 497. They'll be sending letters out too, to the 465,000 or so customers they've identified as being entitled to compensation.
Tony Cocker, the E.on chief executive, apologised: "It is completely unacceptable that we may have been unclear with customers about their tariff choices and as a result those customers may not have made the best choices for them. There was no organised attempt to mislead, and Ofgem has acknowledged this, but that does not excuse the fact we did not have in place enough rules, checks and oversight."