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Retail & Consumer

E.On forced to pay out £650,000 after charging 1.6m customers early before Christmas

Customers were told they would pay their bill in January but were charged on Christmas Eve

E.On charged 1.6m customers early, leaving them out of pocket on Christmas day(Image: PA)

Energy supplier E.On has agreed to pay more than £650,000 to its customers after it left more than a million households out of pocket when it charged them early before Christmas Day.

The mistake led to 1.6m customers, who expected to be charged at the beginning of January, having their energy bills charged on Christmas Eve.

It meant that customer may have been forced to unexpectedly go into their bank overdrafts over the Christmas period.

The energy company noticed the issue on December 23 and told industry regulator Ofgem. E.On then refunded most customers on December 29 and December 30.

However on New Year's Eve, E.On discovered another 10,060 customers had also been affected.

Ofgem said that discovering the extra customers had been impacted so late suggested the company did not act properly to put things right.

Anna Rossington, Ofgem's director of retail, said: “Ofgem expects suppliers to adhere to the terms of contracts they have with customers, in particular the agreed direct debit payment dates.

“This failure is a reminder to suppliers that, when making changes to their systems, they need to undertake appropriate checks to avoid any unintended consequences for customers.