THOUSANDS of hard-up energy customers are due compensation after the regulator found that they weren’t offered extra support.
Utilita is being forced to pay over 25,000 customers £830,000 in compensation.
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Ofgem has directed the supplier to pay out after it discovered that hard-up households weren’t being given adequate additional support as the cost of living crisis bites.
The customers affected will receive £20 each as a direct credit to their prepayment gas or electricity meters.
Utilita has 775,792 electricity customers and 648,098 gas customers – the majority of which are on costly prepayment meters.
Around four million households are on these costly prepayment meters and half of those are on old-style traditional prepayment meters which leave many at risk of self-disconnection if they can’t afford to top up.
Ofgem sets rules which ensure that customers that can’t afford to top up are offered support when they contact their supplier.
Energy suppliers have a duty to offer a wide variety of support for hard-up customers including:
- Emergency credit if your meter runs low or runs out.
- ‘Friendly hours’ credit if top-up points are closed and your meter is running low. You can access this overnight, at weekends and on public holidays.
- Extra support credit if you are in a vulnerable situation and have few options to pay.
- Extra support credit while you work out ways to pay if you are in a vulnerable situation. For example, if you cannot leave your home because of the pandemic.
And while you need to repay the credit from your supplier when you next top up – customers have a right to ask their supplier to agree to a repayment plan.
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Suppliers have a duty to work with you to agree on payment plans you can afford.
Utilita has also confirmed that it will make a voluntary contribution worth £321,740 to the Energy Redress Fund, which supports energy customers in vulnerable situations
Cathryn Scott, Ofgem’s director for enforcement and emerging issues, said: “As the energy regulator, protecting consumers is our top priority, and we have strong expectations that energy suppliers must take the individual circumstances of consumers, particularly those who in vulnerable situations, into consideration.
“Prepayment meters are currently relied on by around four million UK households, and the current cost of living issue is placing pressure on many households, which in turn is causing more people to require additional support credits to top-up for their prepayment meters.
“This action should serve as a reminder to other suppliers to go further to ensure vulnerable groups are getting the support they need, particularly during the colder winter months.”
The new Energy Price Guarantee (EPG) capped the typical bill for households that pay their energy bills by direct debit at £2,500.
But, prepayment meter customers pay more and the typical bill under the cap amounts to £2,559 a year.
