Big six supplier E.ON Next pays millions in compensation after billing failures

One of the UK's biggest energy providers has paid out £14.5m after a series of billing failures.

E.ON Next, one of the big six suppliers, failed to provide final bills and refunds to prepayment meter customers. Each recipient got an average of £144.

The absence of final bills meant customers weren't aware of credit in their accounts, an average of £51, and didn't get an automatic refund.

Nearly 250,000 prepayment meter customers were affected by the error between February 2021 and September 2023, a time when energy prices rocketed after Russia's invasion of Ukraine.

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Regulator Ofgem said these prepayment meter customers are more likely to face financial difficulties.

Under Ofgem rules, suppliers must issue a final bill within six weeks after a customer changes supplier. If a company does not, it must make compensation payments of between £30 and £60.

E.ON failed to do this as well.

The company has also agreed to voluntarily write off debt held by nearly 150,000 prepayment meter customers who closed their accounts between February 2021 and September 2023.

It's not the first time the E.ON has been reprimanded for delays in producing final bills.

Last year it was one of three household gas and electricity firms that paid £8m for either missing or delaying compensation payouts due when a customer switched to another provider.

It has been in the headlines in recent years for customer service weaknesses throughout the company.

About 500,000 households got £8 in compensation for the firm's "unacceptable" call services.