Most UK energy companies need to improve help for struggling customers, Ofgem warns
Ofgem says ‘needs of vulnerable customers’ must be one of ‘top priorities’ for suppliers
Most of the UK’s energy suppliers need to make improvements to meet their obligations to support customers struggling to pay their bills, energy regulator Ofgem has warned.
The watchdog said some companies had “fallen short” of how they are expected to help households in difficulty.
Ofgem said it understood energy suppliers were facing demands of their own but it was “critical” to prioritise vulnerable customers struggling to pay bills over winter.
It carried out a full market review into how companies were supporting those in financial difficulty.
According to official estimates, nearly half of UK adults are struggling to afford soaring energy bills.
Have you been affected by a lack of support with rising bills? Contact zoe.tidman@independent.co.uk
The energy regulator found all gas and electricity providers - bar one - needed to improve processes and governance to protect customers with payment difficulties.
Among its key findings, Ofgem said it uncovered failures in companies being able to identify customers in payment difficulty and a lack of help given to those needing crucial payment plans.
It also found a lack of clarity in places over how payment plans are reassessed if a customer’s circumstances change.
Three suppliers – TruEnergy, Utilita and ScottishPower – had “severe weaknesses” in how they support struggling customers, according to Ofgem.
“In each case, we identified that the supplier did not have a consistent and structured approach to managing customers in payment difficulty or a risk that policies designed to support customers were not being implemented, and that they were not properly identifying or fully supporting prepayment customers,” its report said.
“We believe this puts consumers at a serious risk of poor and potentially serious outcomes including self-disconnecting, and there is a clear need for rapid and significant improvement.”
Ofgem said five - E, Good, Green Energy, Outfox and Bulb - had “moderate weaknesses” with the support they provide.
It said eight had “minor issues” in this area: Ecotricity, EDF, E.ON, Octopus, OVO, Shell, UW and SO/ESB.
British Gas was the only supplier found not to have any significant issues.
Utilita and Scottish Power have already been served with provisional orders, which requires them to take urgent measures, while Ofgem is considering whether further enforcement action is needed for other suppliers.
All of those identified have been asked to submit information to Ofgem to set out how they will improve.
“This winter will be challenging, especially for those struggling to pay their energy bills,” Jonathan Brearley, the chief executive of Ofgem, said.
“Although the government’s package of support will provide some welcome relief, it’s critical that, going into this tough winter, energy companies prioritise the needs of vulnerable customers struggling to pay their bills.”
He added: “We accept that there are many pressures on energy companies in the market this winter, but the needs of vulnerable customers must be part of their top priorities.
“We will now work with companies on where they can improve, and I all urge all suppliers to step up to the challenge.”
A spokesperson for Utilita said it was “very disappointed” with Ofgem’s conclusions and “remained in discussions” with the regulator to explore the concerns raised.
The other two suppliers that Ofgem highlighted as having “severe weaknesses” have been approached for comment.
Additional reporting by Press Association