The Authority has engaged with E.ON throughout the period of the Provisional Order being in place. Having assessed the information received, the Authority is satisfied that E.ON has been taking steps which we consider to be appropriate to secure compliance with SLC 0.3(c)(i) and SLC 0.3(c)(iii) (in respect of E.ON’s customer service provision).
Therefore, the Authority has decided not to confirm the Provisional Order. The Provisional Order has lapsed and ceased to have effect on 2 May 2023.
On 2 February 2023, the Gas and Electricity Authority (“the Authority”) issued a Provisional Order with respect to contraventions by E.ON Next Energy Limited (“E.ON”), in accordance with section 25(2) of the Electricity Act 1989 and 28(2) of the Gas Act 1986. It appears to the Authority that E.ON is contravening or is likely to contravene Standard Licence Conditions (“SLCs”) 0.3(c)(i) and (iii) of its Gas and Electricity Supply Licences.
Ofgem’s Market Compliance Review (“MCR”) of the quality of all energy suppliers’ customer service over the period of October – December 2022, found that there were significant failings in E.ON’s customer service performance during that period, notably, excessive call waiting times and very high abandoned call rates. Ofgem’s retail compliance team engaged with E.ON to discuss its concerns and received additional information on 27 January 2023. Despite this, there are still substantial concerns about E.ON customer service arrangements, leading to the Provisional Order.
The Provisional Order states the action that E.ON is required to take to make it easy for customers to contact them and to ensure that customer service arrangements and processes are complete, thorough, fit for purpose and transparent. These actions include making significant and sustained improvements in the rate of answering calls from consumers, and average call waiting times.
The Authority considers that it is essential to uphold compliance with these conditions as failure to do so risks significant consumer harm. The current market conditions are challenging for consumers, with many facing financial difficulties attributed not just to rising energy costs, but wider issues related to the rising cost of living. As such, it is likely that customers will wish to contact their supplier urgently for various reasons including billing, payment options and payment difficulties, energy efficiency advice and debt. It is therefore imperative all licensees, including EON, have suitable customer service arrangements to meet the needs of their customers.
Further details are contained in the Provisional Order and Notice of Reasons published on along with this Order.