Ofgem orders suppliers to improve help for customers in payment difficulties
Ofgem has today (Tuesday 27 September 2022) published its Market Compliance Review of how energy suppliers help customers in payment difficulties and has found issues ranging from minor through to severe weaknesses, or failings.
The deep dive found that, although good practice exists across the industry, with one supplier having no issues, most need to make improvements in processes and governance to meet their obligations. The majority of suppliers were found to have minor or moderate issues and three were found to have ‘severe’ weaknesses – of which two suppliers have been served with immediate enforcement notices.
Given the seriousness of these concerns, Ofgem has already issued Provisional Orders to Utilita and ScottishPower, requiring specific and urgent actions, and the regulator will also consider whether enforcement action is warranted for other suppliers.
Key findings:
- One supplier was found to have no significant issues (British Gas)
- Eight suppliers (Ecotricity, EDF, E.ON, Octopus, OVO, Shell, UW and SO Energy) were found to have ‘minor’ issues
- Five suppliers (E, Good, Green Energy, Outfox and Bulb) were found to have ‘moderate’ weaknesses
- Three suppliers (TruEnergy, Utilita and ScottishPower) were found to demonstrate ‘severe’ weaknesses in the way they deal with customers having payment difficulties, with Utilita and ScottishPower being issued with enforcement notices.
Amongst the findings were companies with non-existent policy relating to customers in payment difficulties, a lack of management oversight in the quality of their customer engagement and a lack of adequate training materials.
Energy suppliers have been facing demands of their own over the past year; however prioritising vulnerable customers struggling to pay their bills during this winter is critical. Read More–>
