Investigation into E.ON's compliance with its reporting obligations under Article 16(1)(a) of the Electricity and Gas (Carbon Emissions Reduction) Order 2008 (as amended) with respect to the distribution of energy saving light bulbs

Opened:
Mar 2011
Decision Proposed:
Jul 2013
Closed:
Aug 2013
Company:
E.ON
Regulation Area:
Sectoral Regulations

The Gas and Electricity Markets Authority ("the Authority") has confirmed its decision to impose a financial penalty on E.ON for its failure to comply with its reporting obligations under the Government’s Carbon Emissions Reduction Target (CERT) programme with respect to distribution of energy saving light bulbs.

Our decision followed an investigation into the accuracy of information submitted by E.ON to Ofgem regarding the extent to which it distributed free energy saving light bulbs into homes in Great Britain.

The investigation found E.ON's reported distribution figure of around 3.4 million light bulbs to be inaccurate. As a result of this inaccuracy, E.ON was in breach of their reporting obligation under the Government’s Carbon Emissions Reduction Target (CERT) programme.

The Authority considered it appropriate to impose a financial penalty for these contraventions. The Authority decided to impose a financial penalty of £500,000 on E.ON and this reflects the serious nature of inaccurate reporting.

This is in addition to the £2.5 million E.ON has agreed to pay in consumer redress. E.ON will pay £2.5 million in additional payments to its customers who are eligible to receive the Warm Home Discount Broader Group payments. These payments will mean around 18,500 extra customers will receive £135 to help with their 2013/14 winter bills. These arrangements are in addition to E.ON’s obligations under the scheme.

Further details can be found in the final penalty notice.