Home Money Eon to pay £14.5m to almost 250,000 customers over prepaid meter billing failures

Eon to pay £14.5m to almost 250,000 customers over prepaid meter billing failures

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Penalties: Eon customers who switched suppliers or ended contracts did not receive final invoices within six weeks as required

Penalties: Eon customers who switched suppliers or ended contracts did not receive final invoices within six weeks as required

Electricity firm Eon Next has agreed to pay £14.5 million after “unacceptable” failures to provide final bills and refund credit balances to almost 250,000 prepaid meter customers, the energy watchdog said.

An error in the billing system between February 2021 and September last year meant people who switched suppliers or ended contracts did not receive final invoices within six weeks, as required.

Many faced financial difficulties as energy prices soared.

Eon Next failed to make compensation payments of £30 or £60, while 100,000 customers were not informed of their remaining credit (average value of £51) and received no refunds.

Each affected customer will receive an average of £144 after Eon agreed to pay £14.5m in compensation.

Ofgem’s Beth Martin said: “During a period when households have faced a cost of living crisis, it is unacceptable that consumers are not receiving refunds for credit they were owed.”

Eon reported the error itself and agreed to cancel the debt of nearly 150,000 customers who closed accounts.

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