Energy supplier E.ON slapped with £3m “financial settlement” by Ofgem


Energy firm E.ON has been slapped with a £3m fine after failing to comply with their reporting obligations under the government’s carbon emissions reduction target (Cert) programme, a news report in the media reveals.

The energy supplier was forced to cough up this sum after energy efficient lightbulbs that were supposed to have been given away free in the UK under a government initiative were found for sale in Ireland.

E.ON’s error was due to its failure to have in place adequate management systems to ensure accurate reporting of the distributed light bulbs but, since then, the company reportedly took action in order to ensure it met its overall CERT obligations by installing extra energy-saving measures to make up for the carbon savings shortfall associated with the light bulbs it wrongly claimed to have distributed.

What makes this decision even more interesting, though, is the fact that, instead of directing all the funds to the UK Treasury, Ofgem decided that £2.5m should go towards households hit by fuel poverty, while the actual fine is set to just 500,000 pounds. In real terms, 18,500 customers in – or at risk of – fuel poverty will get around £135 to help with their 2013/14 winter bills.

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