EDF Energy to pay £4.5m towards vulnerable customers after Ofgem probe into sales and marketing practices
EDF Energy has agreed to invest £4.5m towards helping vulnerable customers after an investigation by Ofgem found that it had breached its marketing licence conditions.
The package is the first step by the company towards regaining and improving customer trust, after as it aims to engage in dialogue about the shortcoming of its sales processes.
The investigation found that EDF Energy did not meet the standards of Ofgem’s marketing rules, introduced in 2009, with weaknesses in the company’s processes and controls over compliance with rules over clarity and accuracy of sales information highlighted.
Sarah Harrison, senior partner for Ofgem, 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.
"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 good news is that we are seeing that energy suppliers, like EDF Energy, are themselves increasingly recognising that they need to make changes to restore trust and today's announcement is part of this process."