Following an investigation by UK’s energy watchdog Ofgem, EDF Energy is paying £4.5 million to its most vulnerable customers. It found that the energy supplier’s sales processes had “weaknesses” and breached marketing licence conditions.
The systems that EDF had in place did not meet standards that would make sure customers have clear and accurate information, meaning customers were not fully protected against the risk of mis-selling.
EDF accepted the result of Ofgem’s investigation and agreed to pay money back to customers who most need the help. Energy Best Deal programme, which supports EDF’s vulnerable customers, will receive around £1 million and the remaining £3.5 million is to be paid to customers at risk of fuel poverty.
Ofgem’s senior partner in charge of enforcement, Sarah Harrison, said consumer confidence in the energy sector needed to be re-established and suppliers should get behind watchdog standards to ensure a clear and simple market for customers.
The watchdog is also currently investigating the sales processes of Scottish Power, SSE, and npower.
Audrey Gallacher, director of energy at Consumer Focus, comments: “It’s a positive step forward that an energy company has worked with the regulator to tackle this issue.
“We’ve called for Ofgem to have the power to make sure energy customers benefit from any fines – so it’s good news that this voluntary approach has led to customers being compensated rather than money returned to the Treasury.”
The news follows yesterday’s report that EDF has a “long way to go” on customer service, after data from Consumer Focus showed it was the most complained about energy company in the UK.
