E.ON Fined for Selling Energy Efficient Bulbs It Was Supposed to Give Away

Energy Efficient LightbulbsIt now appears that well-known energy firm E.ON has found itself in the hot seat again. This time the energy giant has been told to pay some £3 million in a financial settlement. This settlement includes a huge £500,000 fine that the company received for failing to report just how many free energy-saving light bulbs it gave away under the government’s energy saving scheme.

Ofgem, who is the energy regulator in the UK, said that this huge settlement reflects the very serious nature of the offense that E.ON has committed. The company completely breached its obligation to report to the government under the Carbon Emissions Reduction Target program.

Ofgem added that the penalty that E.ON has to pay has been broken up into two parts. This penalty will allow consumers to actually benefit instead of all of the money going back to the Treasury. E.ON will have to pay close to £2.5 million to 18,500 consumers who are at risk of or are in fuel poverty. This will help to lower their 2013/14 winter bills. This will equal about £135 a household. The remaining £500,000 will be paid as a fine. Ofgem said that this fine would have been a lot higher had E.ON not fully cooperated.

Under the government’s current energy saving scheme, the Big Six energy companies have to introduce measures to help people in the UK reduce their carbon emissions. As part of this, energy companies are required to hand out energy-saving light bulbs for free.

Unfortunately for E.ON, an investigation by Ofgem found out that the company’s claims of having handed out 3.4 million light bulbs was inaccurate. Apparently, this report included energy-saving bulbs that E.ON had sold to its consumers.

Of course, it is not just E.ON who is having a hard time reaching the government’s energy schemes. Ofgem, back in May of this year, reported that all of the Big Six energy firms had missed the energy-saving targets set by the government. They missed these targets because they did not deliver enough free energy-efficient measures to UK homes. These energy-efficient measures could have really helped Brits lower their high energy bills and could have kept more people out of fuel poverty.

The good news is that the energy companies did achieve about 99 percent of the government’s energy-efficient targets by December of last year. E.ON, RWE, EDF Energy and Eggborough Power were said to have reached their goals. However, E.ON now faces problems for failing to report accurately.

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