As winter approaches, Ofgem warns that vulnerable households will continue to bear the brunt of the impact if energy providers do not improve their customer service.
The energy regulator disclosed that the vast majority of the nation’s energy suppliers have been instructed to improve their handling of customers who are failing to pay their bills.
Ofgem stated that its evaluation of supplier compliance revealed that just one company, British Gas, was achieving its responsibilities, while the rest needed to step up at a time when consumers faced unprecedented bills due to the cost of living issue.
Three organizations — TruEnergy, Utilita, and ScottishPower — were deemed to have “serious deficiencies,” while five — E, Good, Green Energy, Outfox, and Bulb — were found to have problems with the assistance they provide to clients.
Ecotricity, EDF, E.ON, Octopus, OVO, Shell, Utility Warehouse, and So Energy/ESB Energy were discovered to have just minor violations that would not need probable enforcement action.
Ofgem stated that Utilita and Scottish Power have previously been served with interim orders ordering them to take immediate action.
Companies’ inability to detect those payment problems was seen as a fundamental failure by the regulator.
In addition, the report identified a lack of assistance for people in need of essential payment arrangements, with some companies having a “non-existent” policy for struggling clients.
Jonathan Brearley, the chief executive officer of Ofgem, stated, “We have assessed suppliers on how they assist customers who are having difficulty paying their bills, especially those who are vulnerable, and discovered that certain suppliers have not met the criteria that Ofgem expects.
We recognize that energy companies face numerous market pressures this winter, but the interests of vulnerable clients must be among their highest concerns.
“We will now work with companies to identify areas for improvement, and I urge all suppliers to rise to the occasion.”
The declaration was made just days before the 1 October implementation of the government’s energy price guarantee, which will curb wholesale costs.
The program replaces the energy price ceiling since it will require taxpayer funding to insulate households from the heaviest raw energy costs anticipated this winter as a result of the conflict between Russia and Ukraine.
Mr. Brearley added, “This winter will be particularly difficult for people who are struggling to pay their energy costs.
Although the government’s support package will bring some welcome respite, it is imperative that energy firms prioritize the needs of vulnerable customers who are struggling to pay their bills as we enter this harsh winter.
