E.ON caught overcharging

Energy supplier E.ON has reportedly been forced to hand over £1.7m to customers after it was caught overcharging.

The company hit around 94,000 UK customers with either higher exit fees than necessary or overcharged them following price rises.

The compensation payment agreed with the energy regulator Ofgem includes a £300,000 payment to a consumer fund which E.ON runs in partnership with the charity Age UK.

Sarah Harrison, the regulator's enforcement chief, said: "Ofgem has put in place protections for consumers so they can get a fair warning if their supplier puts up prices and time to shop around for a better deal.

"E.ON has accepted it failed to meet these protections. [The announcement] that E.ON will compensate customers is a positive step by the company to put right their mistakes."