Utilita Energy customers to receive compensation after additional support credit failure

Utilita Energy has agreed to pay out £830,000 after a robust assessment by regulator Ofgem suggested the supplier was not taking individual circumstances into consideration when deciding whether or not to provide additional support credits needed for customers topping up prepayment meters.

The assessment was based on a review of scripts of employees talking to customers, training materials, procedures, policies and recorded calls with customers.

Utilita currently serves over 775,000 electricity and 648,000 gas customers, and those affected included some customers in vulnerable situations and with medical conditions.

Utilita was issued with a Provisional Order related to this issue on Friday 9 September 2022, which lapsed last week (Friday 9 December 2022) as Utilita has taken steps which we consider to be appropriate to secure compliance. In recognition of its failings, Utilita has now agreed to this financial redress package instead of a penalty.

This means those customers affected will get the payment directly and more quickly.

Cathryn Scott, Ofgem’s Director for Enforcement & 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 4 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. While Utilita has moved swiftly to correct these issues and agreed to compensate those affected, 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.”