Cost of living: Energy suppliers failing vulnerable customers - Ofgem

2 years ago 35

Woman reads billImage source, Getty Images

By Kevin Peachey

Cost of surviving correspondent

Energy suppliers person been failing susceptible customers, the sector's watchdog has said, arsenic radical look a acold and costly winter.

Ofgem told each 17 firms that took portion successful its reappraisal to improve, with 5 recovered to person terrible weaknesses.

Among its findings were examples of suppliers mounting indebtedness repayments truthful precocious that customers decided they could not top-up their pre-payment meters.

But immoderate of the suppliers deed back, calling the reappraisal "incomplete".

Consumer groups described the regulator's study arsenic "hugely concerning" astatine a clip erstwhile radical were being deed by bills treble the level of past winter, amid the soaring outgo of living.

The 5 suppliers identified by the study arsenic having "severe weaknesses" were Good Energy, Outfox, So Energy, Tru Energy and Utilita - which prompted a beardown effect from immoderate of the firms.

"Moderate weaknesses" were recovered astatine suppliers E (Gas & Electricity), Ecotricity, Green Energy UK, Octopus and Shell.

Ofgem said that 7 others had shown insignificant weaknesses, including British Gas, Bulb, EDF, E.ON, Ovo, Scottish Power and Utility Warehouse.

The regulator said immoderate of the worst examples of mediocre signifier included suppliers failing to work the meters of customers who could not bash truthful themselves.

It besides recovered that immoderate susceptible customers were incapable to interaction their supplier to apical up their metre oregon to petition enactment credit.

In immoderate cases, indebtedness repayment rates were acceptable truthful precocious that susceptible customers self-disconnected - successful different words, did not top-up their prepayment metre erstwhile the recognition ran out.

Neil Lawrence, Ofgem's manager of retail, said "most suppliers" took their work to support susceptible customers earnestly and added firms had launched caller initiatives - including dedicated telephone lines.

"Although we are seeing immoderate precise bully signifier successful parts of the industry, we tin spot determination is inactive overmuch much to beryllium done."

He added: "We've seen a fig of failings crossed the committee which request to beryllium urgently addressed.

"It's going to beryllium a precise challenging wintertime for everyone and customers indispensable beryllium assured they are getting the assistance and enactment they need."

Image source, Getty Images

Image caption,

Almost 7.4 cardinal radical successful Britain usage prepayment meters for their energy

It is Ofgem's 3rd reappraisal into assorted aspects of suppliers' attraction of customers. The archetypal demanded enactment connected soaring nonstop debit demands and the 2nd recovered much assistance was needed connected payment plans for those struggling to pay.

This latest reappraisal required suppliers to springiness grounds astir however they identified and kept records of customers successful a susceptible situation, and whether they were added to a precedence registry for help.

Suppliers besides gave accusation astir escaped state information checks and susceptible prepayment metre customers.

All the suppliers that submitted information to the regulator were told they indispensable amended their practices.

Ofgem said that successful general, determination were risks that radical were not identified arsenic susceptible and fixed the enactment they were entitled to.

But questions person been raised for the regulator itself, which has been accused of being dormant astatine the instrumentality erstwhile bills are soaring and suppliers failing.

In response, it said it had moved proactively, alternatively than waiting for issues to beryllium reported.

'Top priority' to help

To assistance households with higher bills, the authorities introduced a headdress to constricted terms rises, meaning a emblematic location pays £2,500 a twelvemonth for state and electricity. However, the headdress is connected the portion terms of energy, truthful those with higher usage volition wage more.

This headdress has been extended for 12 months from April, but volition beryllium astatine a higher level, truthful a emblematic household volition wage £3,000 a year. Various cost-of-living payments person been announced to support the much vulnerable, but charities and user groups person warned that galore volition inactive look a peculiarly pugnacious clip this winter.

Rocio Concha, from user radical Which?, said suppliers needed to up their crippled to assistance radical connected the lowest incomes.

"It is hugely concerning to spot Ofgem has recovered that truthful galore vigor firms are falling abbreviated connected the enactment they supply to their astir susceptible customers," she added.

However, Energy UK, which represents suppliers, said galore firms had gone beyond what they were required to bash by the regulator.

"Identifying and supporting susceptible customers is already a apical priority," said Dhara Vyas, manager of advocacy astatine Energy UK.

"Our members person responded swiftly to Ofgem's reappraisal - including providing further documentation to show wherever processes were already successful place, and volition proceed to look astatine each the ways they tin marque definite radical get the assistance and enactment they need."

Some of the suppliers named arsenic having the biggest problems reacted powerfully to Ofgem's report.

Simon Oscroft, co-founder of So Energy, said: "Over the people of the past months and weeks, we person provided Ofgem with extended further accusation related to this reappraisal and we are disappointed that Ofgem has proceeded connected the ground of incomplete information, and successful a mode that whitethorn present origin susceptible customers unnecessary concern."

A spokesperson for Utilita said: "Ofgem's study does not correspond wherever we are arsenic a concern today, nor does it admit the important advancement we person made - and are making - since its archetypal appraisal successful aboriginal summer."

The BBC has contacted Good Energy, Outfox and Tru Energy for comment.

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