Credit, Collections & Insolvency News
Ofgem has said that energy firms have been failing vulnerable customers.
The energy regulator Ofgem has told all 17 firms in its review to improve, with Good Energy, Outfox, So Energy, Tru Energy and Utilita found to have severe weaknesses.
Ofgem said that initial assessment and ratings were formed, many suppliers have already responded positively based on the feedback from the review. Findings showed that, although some good practice was identified, all suppliers need to make further improvements, with the key findings being:
Neil Lawrence, Director of Retail at Ofgem, said “From eligible customers who are missing out on free gas safety checks through to companies not identifying vulnerable customers to be offered obvious support on the Priority Services Register, this robust review has highlighted that suppliers need to do more to support consumers.”
“We welcome the cooperation from suppliers and action taken so far, and, although we are seeing some very good practice in parts of the industry, we can see there is still much more to be done.”
“Most suppliers take the protection of vulnerable customers seriously and several good initiatives to support customers have been launched recently. While it’s encouraging to see the engagement on this Market Compliance Review, with some improvement actions already taking place, we’ve seen a number of failings across the board which need to be urgently addressed. It’s going to be a very challenging winter for everyone, and customers must be confident they are getting the help and support they need.”
“My message to suppliers today is simple- be proactive. Help your customers to know what support is available, and then deliver it.”
Ofgem says that good practice was also identified as part of the review, with some suppliers offering ‘cash grants towards energy bills’ for customers, and many energy companies signing up to Energy UK’s Vulnerability Commitment.
Ofgem communicated the ratings to all suppliers earlier this month and, since then, has started compliance engagement on the areas for improvement. The regulator will be keeping a close eye on the actions taken to close the gaps identified through this assessment and will consider enforcement action under its Enforcement Guidelines where necessary.
Responding to Ofgem’s review into support for vulnerable customers, Gillian Cooper, Head of Energy Policy at Citizens Advice, said “Given the enormous pressures facing people this winter, energy suppliers should be doing everything in their power to identify and support struggling customers. “
“Citizens Advice sees day in, day out the heartbreaking consequences when this support falls short. People cutting back on food and essentials to cover energy debts and living in cold and dark homes when they’ve simply run out of money to top up their meter.”
“Ofgem is right to hold energy companies to task, it must now ensure this review leads to concrete action.”
Energy UK’s Director of Advocacy, Dhara Vyas, said “Identifying and supporting vulnerable customers is already a top priority for retail suppliers, and many go above and beyond as demonstrated in our good practice summary of our vulnerability commitment.”
“This includes setting up and training dedicated teams, providing millions of pounds in customer support funding, partnering with charities and third parties and encouraging people to sign up to the Priority Services Register.”
“Our members have responded swiftly to Ofgem’s review – including providing additional documentation to demonstrate where processes were already in place, and will continue to look at all the ways they can make sure people get the help and support they need.”
