Energy suppliers ordered to improve treatment of customers in debt

Scottish Power and Utilita have been issued a provisional order by Ofgem compelling the energy suppliers to improve how it treats customers in debt.

A review conducted by Ofgem into suppliers’ practices found a number of apparent failings around the way it sets debt repayment plans and deals with customers struggling with bills.

Provisional Orders issued by Ofgem compel both companies to bring themselves into compliance with their obligations to protect customers in particular circumstances.

These two Provisional Orders come ahead of the findings of a full market review into how suppliers make sure they are supporting customers struggling with bills, due to be published by Ofgem shortly.

The review conducted by Ofgem into Scottish Power found a number of apparent failings around the way it sets debt repayment plans and deals with customers struggling with bills. Scottish Power must comply with the relevant licence conditions that govern its conduct.

Whilst Ofgem found that Utilita has been dealing with all customers, including vulnerable customers, customers on the Priority Services Register (PSR)1 and customers in debt. Utilita must comply with its licence conditions that govern Additional Support Credit, and ensure that pre-payment meters (PPMs) are safe and practicable for its customers.

Cathryn Scott, Ofgem Enforcement and Emerging Issues Director said “These Orders to Utilita and Scottish Power are a clear signal to suppliers about the vital importance of protecting customers. The rise in cost of living is an increasingly important public issue, and we expect urgent and immediate action on the points raised, as well as constructive engagement with Ofgem during the process. Suppliers must consider a customer’s vulnerability and ability to pay to a closer degree, particularly with what is likely to be a very challenging winter for many.”