UK regulator Ofgem has slapped E.ON with a £650,000 fine for taking direct debit payments earlier than agreed for 1.6 million of its customers.
Most of these payments should have been taken out of customers accounts in January 2021, but E.ON did so on 24 December 2020.
“This meant customers may have experienced out of pocket expenses; unexpected overdraft bank charges; difficulty making payments in the run up to Christmas; and other unforeseen circumstances,” Ofgem said.
“Ofgem expects suppliers to adhere to the terms of contracts they have with customers, in particular the agreed direct debit payment dates,” said Anna Rossington, director of retail at Ofgem.
“Ofgem is always prepared to work with suppliers who have failed to comply with their obligations, but who have self-reported and are determined to put things right, as E.on has done,” she added.