E.ON ruling must send signal to entire industry, says Citizens Advice

Citizens Advice has responded to the announcement that Ofgem has secured £7.75m from E.ON after they incorrectly charged exit fees and/or overcharged customers following price rises. The payment will go towards the Energy Best Deal Extra project run by Citizens Advice.

Gillian Guy, chief executive of Citizens Advice, said:

"Customers shouldn’t be trapped into higher bills.

"With prices up a third since 2010 people must have the freedom to shop around for a better deal.

"Ofgem is right to clamp down on this kind of failure. This ruling will send a strong message to the whole industry that consumer rights cannot be ignored.

"The judgement is further proof that prepayment customers get a raw deal – they already pay on average £80 more than direct debit customers.

"It is positive that the Ofgem penalty will go towards helping people who are struggling to heat and light their homes. It is also encouraging that E.ON owned up to the problem and is both providing direct redress and taking steps to make sure this doesn’t happen again.

"Consumers must be confident that the regulator will take strong action when companies fail so this judgement is welcome news."

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .

  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk . You can also get advice online at adviceguide.org.uk

  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers

  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends

  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.