An Ofgem investigation has found Big Six supplier EDF guilty of breaching its marketing licence conditions. As a result EDF has “agreed” to invest £4.5 million to offer help to vulnerable customers. The regulator says the company was not fined because it maintained a “constructive and cooperative” dialogue and acknowledged its shortcomings.
Ofgem said in a statement weaknesses in EDF’s processes and controls created the failings. EDF were found to:
-not always provide their customers with complete information during sales and on calculating bill estimates
-have used telesales agents who promised savings which weren’t always possible.
Sarah Harrison, Ofgem’s Senior Partner in charge of enforcement said: “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.
“In the energy market in general much more needs to be done to restore consumer confidence and all energy suppliers should now get behind Ofgem’s reforms to introduce a simpler, clearer and more competitive energy market.”
The £4.5m package includes £1m which will go toward the Energy Best Deal programme, which helps support vulnerable customers with the rest going to customers at risk of fuel poverty.