Thousands of energy customers could get refunds after concerns were raised by Ofgem. Utilita Energy is set to pay out £830,000, after an assessment highlighted concerns around the provision of additional support credits for prepayment meters customers.
More than 25,000 customers were potentially affected, including those with medical issues and those classed as vulnerable. Customers potentially affected are set to receive £20 each - totalling £508,260 - in most cases as a direct credit on their meter.
A total of £321,740 will also be paid into the Energy Redress Fund, which supports energy consumers in vulnerable situations, amongst other innovation and carbon emission reducing investments. It comes 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.
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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, September 9 2022, which lapsed last week. Utilita has taken steps which were deemed to be 'appropriate to secure compliance', Ofgem said.
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 and 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 four 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.”
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