E.ON Next is set to pay a total of £5 million out to households as compensation after a review of its customer service uncovered "severe weaknesses".
The energy supplier was found to have "unacceptable" call services, with customers facing long call waiting times and a high level of unanswered calls, according to energy regular Ofgem. A review carried out by the regulator found that E.ON Next customers were forced to wait on hold for 18 minutes on average, while half of all calls were dropped and failed to contact the supplier.
E.ON Next will pay £4 million in compensation to more than 500,000 customers that were potentially affected, working out at £8 each. It will also pay a further £1 million to Ofgem's voluntary redress fund, which supports vulnerable energy consumers and investments in reducing carbon emissions.