E.ON didn’t place enough rules & checks: admits CEO Cocker

After being slapped with a £12 million payout order by regulator Ofgem, energy supplier E. ON's chief executive has admitted that the company has failed to place enough rules and checks to avoid the latest mis-selling scandal.

Ofgem ordered E. ON to pay a record £12 million to affected customers after a probe found that the company broke energy sales rules and pursued extensive poor sales practices over the three years, causing financial harm to customers.

Following the ruling, CEO Tony Cocker said that he was personally devastated by the errors but stressed that he would not step down. He also declined to admit that the firm had been unclear with customers about tariff choices.

Speaking on the topic, he said, "It is completely unacceptable that we may have been unclear with customers about their tariff choices. There was no organised attempt to mislead … but that does not excuse the fact we did not have in place enough rules, checks and oversight."

Nearly 465,000 customers, who reportedly received misleading information about tariff plans, have been asked to contact. Each of these customers will receive an average payment of around £67.

While the failings didn't cost Mr. Cocker his job, he will see his bonus slashed by around a quarter. The company has confirmed that he will receive a bonus of £510,232 for 2013, down by a quarter from the previous year's bonus of £687,300.

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