Ofgem launches investigation into energy supplier’s repayment service

16th February 2018

Ofgem has launched an investigation into Energy company Iresa’s customer service processes.

The investigation will examine whether Iresa broke rules relating to customer information and customer contact. This includes examining whether they treated customers fairly in their call handling and complaints processes, gave indebted customers sufficient notice that they were taking a debt repayment out of their account, or established with these customers their ability to pay the debt. This also includes examining whether they enabled customers to switch suppliers on request, in line with our rules, or refunded customers’ money in a prompt and timely way.

The investigation comes after Iresa’s practices prompted complaints, collected by the likes of Ofgem and Citizens Advice.

Iresa stopped taking new customers temporarily last spring after Ofgem found that customers were having trouble getting in touch with the energy provider.

Ofgem stressed that the launch of the investigation itself does not imply that it has made any findings over non-compliance.

Responding to the announcement “Today’s announcement is extremely welcome. Citizens Advice reported Iresa to Ofgem in November 2017, following a number of concerns related to billing problems, long phone queues and inappropriately blocking customers from switching. According to our complaints handling data, Iresa is one of the poorest performing energy companies.”

“New entrants to the market should face greater scrutiny. It’s currently too easy for new firms to set themselves up as energy suppliers, often before they are able to provide good quality customer service. Ultimately it is energy customers who pay the price when firms are not up to scratch.”