Cash back for E.On customers over blunder

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energy supplier E.On is to pay back around £1.4m to about 94,000 customers who were incorrectly charged exit fees or overcharged following price rises, regulator Ofgem has announced.

Ofgem said E.On had also agreed to make an additional payment of around £300,000 to a consumer fund run in partnership with Age UK as a “goodwill gesture”.

The regulator said it had “secured a commitment” from E.On to pay back the money after the supplier recognised it had failed to meet licence obligations relating to the mandatory 30-day notice of price rises.

The rule gives customers the chance to switch suppliers before the increase takes effect. They do not incur exit fees or the higher charges if they signal their intention to move within this time, even if the switch occurs after the price rise.

Ofgem said it had been assured by E.On that all of the consumers affected had been identified and would get a rebate of an average of £14.83.