Ofgem Fines EDF for Bad Marketing - Energy Poor Consumers to Benefit

Consumer watchdog Ofgem has levied a charge on EDF Energy of £4.5m for being found guilty of improper marketing practices - instead of a fine however, the supplier has agreed to hand the bulk of £3.5m to customers who are struggling to pay their energy bills.

In addition to reducing the bills of EDF Energy customers at risk of fuel poverty, another £1m will be donated to the Citizen's Advice Bureau's campaign that aims to encourage people to shop around for the best energy deals on the marketplace.

Although Ofgem found EDF's sales team guilty of not providing customers with enough information on contract terms when they signed up and also of incorrectly telling them they could save money before knowing that they truly could, the watchdog did however praise EDF for "addressing its shortcomings" and engaging in a "constructive dialogue".

Senior Enforcement Partner at Ofgem, Sarah Harrison, commented: "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."

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