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)
- Investigation status:
- Closed
- Publication date:
- Closed date:
Decision:
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.