You might have heard about or been involved in the E.On customer outcry around Christmas time last year – more on this later. Have you been compensated for any bank charges or detriments caused by the energy supplier’s early direct debit payments? You can still contact E.On for compensation now. Here’s what you need to know.
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Why is E.On paying customers compensation?
Energy giant E.On took payments from almost two million customers earlier than agreed. This took place on 24 December 2020, when the payments were due for collection in January 2021.
Most of these customers were caught off-guard and faced unplanned overdrafts, cancelled Christmas plans and financial difficulties.
The energy supplier reported a technical glitch in its system after the changes made to E-credit hours for pre-payment (PPM) customers. It apologised and promised to refund customers by 29 December 2020.
Since the refund may not have resolved any bank charges or detriments caused by the early direct debit payments, the energy giant had to make things right. How? By compensating any customer who makes a legitimate claim concerning this issue.
Who regulates companies like E.On?
Energy suppliers like E.On are regulated by Ofgem. Ofgem’s role is to protect consumers by delivering a greener and fairer energy system. So, how did Ofgem protect consumers from the problems caused by the early direct debit payments?
E.On reported the early direct debit payment error to Ofgem the same day it happened, 24 December 2020. It is clear that E.On failed to adhere to the terms of the contracts they have with customers, meaning they are liable. The good thing is that E.On acknowledged its error, was ready to make things right and continued to engage with Ofgem.
To date, E.On has paid more than £55,000 to customers who have reached out to them, having suffered out-of-pocket expenses, unexpected bank overdrafts and other detriments.
The energy giant has also promised to pay £627,312 to Ofgem’s energy redress fund.
Is compensation from E.On still ongoing?
Customers negatively affected by E.On’s early direct debit payments, and who haven’t received compensation, can still contact E.On.
Anna Rossington, Ofgem’s director of retail, has called upon negatively affected customers who haven’t already spoken to E.On to do so. These customers should contact the energy supplier if they wish to claim any compensation.
How do I contact E.On?
Only people named on your E.On account should contact the company to discuss compensation. Additionally, you should have details/evidence of the extra costs incurred and any other detriments faced.
Ofgem’s advice to other energy suppliers
Ofgem has appealed to other energy suppliers to always conduct the appropriate checks to avoid unintended consequences for customers. This might help avoid a similar situation to that faced by E.On customers. Additionally, Ofgem favours working with energy suppliers who report themselves early, are co-operative and want to make things right.