Energy giant E.On is to pay a record £12m penalty following an investigation into mis-selling by the industry regulator.
Ofgem has carried out a series of mis-selling investigations, and in December imposed a £3.5m penalty on Npower.
Ofgem says E.On's penalty is the biggest supplier pay-out to customers, reflecting the extensive rule breaches, both on the doorstep and by telephone.
The energy supplier apologised for the "completely unacceptable" failings.
E.On will pay around £35 to 333,000 customers who are normally recipients of the Warm Home Discount.
It will also write to around 465,000 customers it has identified itself, informing them of how to get in touch to find out whether they were mis-sold to.
Ofgem found that E.On had poor sales practices, failed to property train staff, and had insufficient safeguards.
The mis-selling occurred between June 2010 and December 2013.
The regulator said that E.On had opportunities to improve its sales practices long before 2013, but its response was inadequate.
However, Ofgem said E.On had co-operated fully with its investigation, which began in 2012.
No excusesTony Cocker, chief executive of E.On UK, said it was "completely unacceptable" that sales staff had been unclear with customers about their energy tariff choices.
He added: "There was no organised attempt to mislead, and Ofgem has acknowledged this, but that does not excuse the fact we did not have in place enough rules, checks and oversight."
Mr Cocker said E.On was completely overhauling its sales processes and had already ended doorstep sales and telephone cold calling.
Sarah Harrison, senior partner in charge of enforcement at Ofgem said: "The time is right to draw a line under past supplier bad behaviour and truly rebuild trust so consumers are put at the heart of the energy market.
"E.ON has today taken a good step by accepting responsibility for its actions and putting proper redress in place."
The energy watchdog has imposed nearly £100m in fines and redress on energy companies for various rule breaches over the last four years, £39m of which have been for mis-selling.
Have you been affected by issues covered in this story? You can email us at haveyoursay@bbc.co.uk using the subject line 'E.ON mis-selling'.
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