Eon Next: major energy firm to pay £14.5 million compensation to 250,000 customers - do I need to apply?

• Eon will pay £14.5 million in compensation after failing to send final bills to 250,000 customers
• A billing fault caused delays in final bills and refunds for affected customers.
• Many customers struggled financially amid rising energy costs, with some missing out on automatic compensation
• Each affected customer will receive an average of £144, including credit refunds and compensation payments
• Compensation will be processed automatically, with no action required from impacted customers

A major energy company has agreed to pay out £14.5 million to UK customers after failing to provide final bills and refund credit balances to nearly 250,000 pre-payment meter users.

Regulator Ofgem said that a fault in Eon Next’s billing system between February 2021 to September 2023, meant that customers who switched suppliers or ended their contracts did not receive their final bills within the required six-week period.

Ofgem said that many of these customers were already struggling financially amid the rising cost of energy, and described the issue as “unacceptable”.

Eon Next failed to provide compensation payments of £30 or £60 to affected customers. 100,000 customers were also not informed about the remaining credit on their accounts, which averaged £51, and did not receive automatic refunds.

So what does it mean if you were affected by the issue, and can you expect to see any sort of compensation come your way? What do you need to do to claim it? Here is everything you need to know.

How much money could I receive?

The £14.5 million being paid out by Eon includes £4.7 million in credit refunds, £6.6 million in compensation payments and an extra £3.2 million in compensation to affected customers.

Each customer affected is set to receive £144 on average. Eon has also agreed to write off debt held by almost 150,000 pre-payment meter customers who closed their accounts during the time of the billing failures, Ofgem has said.

It has also since updated its billing systems to resolve the issue and ensure final bills are sent to pre-payment meter customers, Ofgem said.

Beth Martin, director for consumer protection and competition at Ofgem, said: “Eon Next has demonstrated an understanding of the significant impact [of] this issue... the action to write off debt will also offer affected households peace of mind.”

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Do I need to apply for compensation?

If you have been affected, you do not need to take any action, and the compensation will be processed automatically.

Eon will work with Ofgem to identify the impacted customers. In previous compensation situations, those with prepayment meters have been given Post Office vouchers.

Where Eon is unable to trace affected customers, it has agreed to pay into the Energy Industry Voluntary Redress Fund, which funds projects and schemes to support vulnerable energy consumers.

Have you been affected by Eon Next's billing issues? We’d love to hear about your experience. Share your thoughts, questions or any concerns in the comments section.