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London - E.ON UK, one of Britain's "big six" energy suppliers, will hand out £12m in compensation to vulnerable customers for mis-selling, the largest ever such payout by a UK energy firm, regulator Ofgem said on Friday.
E.ON UK, owned by Germany's E.ON, failed to properly train and monitor staff leading to incorrect information being provided to customers, Ofgem said.
Redress package
About 330 000 households, including pensioners, the disabled and low-income families, would receive a payment of about £35 in a redress package.
"The agreed redress package reflects the harm caused by E.ON's extensive poor sales practices carried out between June 2010 and December 2013," the regulator said.
Ofgem said it found no evidence that E.ON senior management had deliberately tried to mis-sell to customers.
Energy supply
The regulator fined the business £1 because the company had agreed to the conpensation package.
£39m for mis-selling tariffs.
The payouts will further damage the already rock-bottom reputation of the UK energy supply industry and come a month after British Gas-owner Centrica was ordered to pay about £5.6m for blocking some business customers from switching supplier.
