Investigation into EDF's compliance with SLC 23 (notification of contract terms), SLC 25 (marketing activities) and SLC 27 (provision of information to customers who pay for energy by direct debit)

Opened:
Sep 2010
Decision Proposed:
Mar 2012
Closed:
May 2012

The Gas and Electricity Markets Authority ("the Authority") has confirmed its decision to impose a financial penalty on EDF for its failure to comply with SLC 23 (Notification of Domestic Supply Contract Terms), SLC 25 (Marketing Gas/Electricity to Domestic Customers) and SLC 27 (Provision of information to customers who pay for electricity/gas by way of regular direct debit payments of a fixed amount) of its electricity and gas supply licences.

The Authority found that for varying periods from October 2009 EDF Energy breached the relevant licence conditions in its face-to-face and telephone sales. EDF Energy failed:

  • to ensure consistent provision of complete and accurate information on aspects of sale, including information on Principal Terms
  • sufficiently to ensure and control the provision of accurate estimates, comparisons and monthly direct debit ("MDD") payments
  • and to have regard to all relevant information when arriving at a "best estimate" of a prospective customer’s annual consumption

The Authority considered it appropriate to impose a financial penalty for these contraventions. The Authority decided to impose a nominal financial penalty of £1 on EDF.

This is in addition to the £4.5 million EDF has agreed to pay in consumer redress to benefit consumers most in need of assistance.

Further details can be found in the final penalty notice.