Partly Cloudy

Partly Cloudy

max temp: 21°C

min temp: 13°C

ESTD 1874 Search

Energy: EDF to pay out £3m following breach of Ofgem complaint handling rules

10:52 22 August 2014

EDF Energy is to pay out £3 million to benefit "vulnerable customers" after an investigation by Ofgem.

EDF Energy is to pay out £3 million to benefit "vulnerable customers" after an investigation by Ofgem.

EDF Energy is to pay out £3million to benefit “vulnerable customers” after an investigation by regulator Ofgem found the company had breached complaint handling rules.

shares

The inquiry followed an increase of more than 30% in the levels of complaints recorded by the energy company during the mass migration stages of introducing a new IT system in 2011, Ofgem said.

It found that, between May 2011 and January 2012, EDF Energy did not have appropriate procedures in place to properly receive, record and process all customers’ complaints in accordance with complaints handling rules.

Many customers experienced unacceptably high call waiting times, with many deciding to hang up due to the company encountering a number of unexpected technical problems, Ofgem said.

When customers did get through, there was evidence that the supplier failed to record all the required details for the complaints received.

These included the date of receipt, a summary of the complaint and action taken, which could have led to difficulties in tracking progress of consumer complaints.

At times when the new systems were down, complaints were not logged until some time after they were actually received.

The regulator said staff at the energy company took action quickly to rectify the problems and to mitigate the effects on consumers. The company had acknowledged that its customers were caused significant disruption and had publicly apologised for this.

Sarah Harrison, Ofgem’s senior partner with responsibility for enforcement, said: “EDF Energy failed to have sufficiently robust processes in place when they introduced a new IT system and this led to the unacceptable handling of complaints.

“Their commitment to putting things right and paying £3m to the Citizens Advice Energy Best Deal Extra scheme and the Plymouth Citizen Advice Bureau’s Debt Helpline to benefit vulnerable customers is a step in the right direction to rebuilding consumer trust.”

Beatrice Bigois, EDF Energy’s managing director for customers, said: “Despite our best efforts and extensive planning to manage this transition in 2011 without impacting our customers, we recognise that for a period of time the service to our customers was not up to the standards they deserve. We apologise to those customers who were impacted during this period.

“We have cooperated fully with Ofgem and have taken this matter very seriously. The £3m package that we are offering will ensure that thousands of vulnerable customers are provided with free, independent advice on debt, as well as information to help them manage their energy consumption and bills.”

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Post Office services to return to Yoxford

The Post Office in a Suffolk town is moving to new premises, and will offer longer opening hours.

Dame Fiona Kendrick:, chief executive of Nestlé  UK & Ireland

Food giant Nestlé has announced plans to close its defined benefit pension scheme, sparking the threat of industrial action.

The Treasury has sold another 1% stake in Lloyds Banking Group.

The taxpayers’ stake in Lloyds Banking Group has fallen to below 16% after the Government sold off another tranche of shares.

The installation of solar panels on the roof of Precision Marketing Group's premises in Lamdin Road, Bury St Edmunds

A Suffolk-based firm will be among the organisations taking part in a nation-wide celebration of solar energy tomorrow.

Candy Gaga'’s Wanda Hewell, right, and daughter, Cherish.

Tower Ramparts in Ipswich now has its very own castle – thanks to the success of a local sweet shop business.

Stansted Airport

A report into the future of Britain’s airports does not rule out a second runway at Stansted – and raises fears of extra night flights to the Essex airport.

Growth in manufacturing eased last month  to its slowest level in two years.

Britain’s manufacturing sector grew at its slowest pace in more than two years last month, impacted by subdued demand from Europe.

Speedy Hire
 has warned that its results for this year will come in

Tool rental business Speedy Hire saw nearly a third of its stock market value wiped off after it announced the shock departure of its chief executive and warned over a major blow to full year profits.

Greene King chief executive Rooney Anand.

Pubs and brewing group Greene King today posted another year of record revenues, with sales within its key Retail division topping £1billion for the first time.

Suffolk Coastal considers convenience store bid

Planning chiefs have responded to concerns about noise and antisocial behaviour arising from proposals for a new convenience store in Kesgrave by insisting on closing times being brought forward an hour and the installation of a barrier to restrict overnight parking.

Most read

Most commented

Topic pages