Currently the news which is creating a buzz in UK streets is French-owned energy company will pay out 3.5m to vulnerable customers rather than face larger fine. EDF the Britain’s largest electricity supplier will pay back a paltry 50 to households who were mis-sold contracts on the doorstep. A donation of 1m will also make to Citizens Advice for energy advice campaign. The French-owned energy giant admitted door-to-door staffs were not trained to give customers all the information they needed. The power group said it would pay out 3.5million to the poorest households it supplies.
The firm saw a spike in complaints last year after it introduced a new billing system in August which was blighted with problems. The supplier later admitted overcharging 100,000 customers over 200,000 – the result of a seven-year fault on the company’s automated telephone meter reading system. The French-owned energy giant also agreed to pay 1million to an energy awareness campaign run by Citizens Advice. The sum comes to only 50 for each of the 70,000 homes judged to be ‘needy’ by the firm. The largest penalty payout ever demanded from an energy firm in this country. Nearly 70,000 homes receiving the one-off payment are already on the company’s Warm Home Discount scheme, where they receive a rebate of 120 a year.
The average EDF dual fuel bill is still 1,129 each year, and even with the extra 50 saving, families will have to fork out almost 1,000 to heat their homes. EDF Energy unveiled profits of 1.6billion – 427 for each of its 3.7million UK customers last month. The company admitted ‘limited shortcomings’ in its sales in 2010 – the period investigated by Ofgem. It is also investigating Scottish Power, SSE (formerly Scottish and Southern Energy) and power. Just 24 hours after it was named the worst of the major power suppliers for customer service, the EDF payout comes. Facing cashing with increase in household energy bills apply with text loans and get quick remedy from urgent bills.
Director of energy at Consumer Focus, Audrey Gallacher said it was positive that an energy company has worked with the regulator to tackle the issue. Climate and Energy Change Secretary Ed Davey said tougher rules were now in place over the information suppliers have to provide to their customers. He further added we are now looking at beefing up Ofgem’s powers further so it can make companies compensate consumers directly in cases like this, rather than having to rely on a voluntary approach