TEN major energy supplier have been warned that they are not doing enough to help struggling customers.
Ofgem said all bar one of the gas and electricity providers need to improve processes and governance to protect customers with payment difficulties.
1
Energy regulator Ofgem has today published its Market Compliance Review of how energy suppliers help customers in payment difficulties.
The regulator found that three suppliers – TruEnergy, Utilita and ScottishPower had “severe weaknesses” in how they support struggling customers.
Five firms were found to have some issues in the support they provide – E, Good, Green Energy, Outfox and Bulb.
British Gas was the only supplier found not to have any significant issues.
Last week, two energy suppliers were issued enforcement notices by the energy regulator, Ofgem.
Scottish Power and Utilita were been found to have demonstrated “severe” weaknesses when it comes to help customers with payment difficulties.
The two firms have over five million customers combined and over 95% of Utilita’s customers are on costly prepayment meters.
Among its key findings, Ofgem said it uncovered failures in companies being able to identify customers in payment difficulty and a lack of help given to those needing crucial payment plans.
Most read in Money
Jonathan Brearley, chief executive of Ofgem, said: “We have reviewed suppliers on how they help customers who are having trouble paying their bills, particularly those who are vulnerable, and found some suppliers have fallen short of the standards Ofgem expects.
“We accept that there are many pressures on energy companies in the market this winter, but the needs of vulnerable customers must be part of their top priorities.
“We will now work with companies on where they can improve, and I all urge all suppliers to step up to the challenge.”
Ofgem has now directed both firms to proactively identify customers in payment difficulty including those on prepayment who may have self-disconnected or are in danger of doing so, so that support can be offered.
The regulator has also asked the energy firms to ensure that payment rates are set according to customers’ circumstances and ability to pay and to ensure that this is regularly reviewed.
Dame Clare Moriarty, chief executive of Citizens Advice, said: Today’s review cements what struggling customers already know: some energy companies are falling drastically short of the mark.
“This is utterly unacceptable given the huge cost-of-living pressures people are facing.
“Suppliers need to up their game and Ofgem needs to hold them to task. With a tough winter ahead we must also see a ban on backdoor disconnection tactics like pushing people in debt onto prepayment meters.”
The Sun has also called for a ban on moving customers onto pre-payment meters this winter.
We’ve asked the energy suppliers how they plan to respond to Ofgem’s findings.
You can get free debt advice
If you’re in debt there are plenty of services you can take advantage of and they offer free advice on how to manage debt.
Most of them can offer you free guidance and help in person, over the telephone or online.
What energy bill help is coming?
From October the first, all households will start to receive a £400 energy bill discount.
The payment will be dished out by your energy supplier and will be split across six discounts between October and March next year.
Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.
In November, a £300 one-off “Pensioner Cost of Living Payment” will be paid out to eight million households.
It will be given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.
Millions of households are in line to get the £150 Warm Home Discount between December and March 2023.
Check if you can get an energy grant
There are plenty of energy grants and schemes open to help you out if you’re struggling.
British Gas has recently confirmed that it’ll pay its most vulnerable customers grants worth £750 to help with sky-high bills.
The British Gas Energy Trust has previously paid struggling households up to £1,500 – and you don’t need to be a British Gas customer to apply for this help.
Ask your supplier what’s on offer and how to apply, or check here:
