E.ON has today (TUES) said sorry for incorrectly applying increases in price to some former customers who left the company after price rise announcements in 2008 and 2011.

Customers affected have been identified by E.ON and will be sent cheques to refund the money owed, with interest added, in January 2013. The average payment is £14.83.

If a customer tells their energy provider they are switching to another supplier following a price rise announcement, no increase in price should be applied to their accounts if the switch is fully completed and the customer's account is transferred to another company.

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Customers who told E.ON they were changing energy supplier immediately after the price rises in 2008 and 2011 will receive a cheque to pay back the money owed by the company with interest added. E.ON will pay out an approximate total of £1.4m to around 94,000 customers. All customers due this payment have been identified and no action is required on their behalf.

David Bird, Customer Service Director, E.ON UK said: "We are very sorry to have let down some of our former customers and have made clear that we will refund the money plus interest. Our systems are being updated to ensure this mistake can never happen again.

"We've been open in our failure with the energy regulator, Ofgem, and are pleased to have agreed with them how we can put this right and have identified all customers who are due to receive payment from us in January."

(CD/GK)