EDF ‘fined’ for breaking marketing rules
EDF Energy has agreed to hand the bulk of a package worth £4.5m back to customers struggling to pay energy bills, after being found guilty of improper marketing practices.
Instead of fining the energy supplier, watchdog Ofgem has sanctioned the payment of £3.5m to help “reduce the bills of EDF Energy customers at risk of fuel poverty”.
Another £1m will be donated to the Citizen’s Advice Bureau’s campaign to encourage people to shop around for the best energy deals.
Ofgem’s investigation found EDF’s sales team guilty of not providing enough information on contract terms when customers signed up and incorrectly telling them they could save money before knowing they could.
The watchdog praised EDF for “addressing its shortcomings” and engaging in a “constructive dialogue”.
Sarah Harrison, senior enforcement partner at Ofgem, says: “EDF Energy has done the right thing by stepping forward and recognising there were weaknesses in its sales processes. The firm also took the initiative to correct these problems during Ofgem’s investigation. This is an important step forward and demonstrates a commitment by EDF Energy towards re-establishing consumer trust which we welcome.”
Investigations into tactics used by Scottish Power, SSE, and Npower are ongoing, Ofgem says.
