Energy suppliers have been warned they are not doing enough to support customers struggling to pay their bills.
Ofgem found that all but one of the UK's energy suppliers need to make improvements and meet their obligations when it comes to helping customers with financial difficulties.
The Government has announced a £2,500 annual cap on household energy bills for the typical household until 2024 as Brits battle mounting costs and record inflation.
But energy giants were found to have "severe weaknesses" when it comes to how they support customers struggling to pay their bills.
British Gas was the only company found to have no significant issues in the Ofgem report published on Tuesday.
TruEnergy, Utilita and Scottish Power were found to demonstrate "severe" weaknesses, according to the regulator.
A string of company failings came to light in its Market Compliance Review, ranging from minor to severe.
Utilita and Scottish Power were even issued with Provisional Orders requiring specific and urgent action following the findings.
Five suppliers were found to have "moderate" weaknesses including E, Good, Green Energy, Outfox and Bulb.
While a further eight were found to have minor issues including Ecotricity, EDF, E.ON, Octopus, OVO, Shell, Utility Warehouse and SO/ESB.
The results show that, although good practice exists across the industry with one supplier having no issues, most need to make changes and improve their processes.
Firms were pulled up their failure to identify customers in payment difficulty and a lack of help given to those in need of crucial payment plans.
Most companies were found to have small to moderate issues.
While five firms were found to have "some issues in the support they provide".
All those included in the review have been asked to update Ofgem on their plans for improvement.
Some companies were found to have a non-existing policy relating to customers in payment difficulties, according to the report.
Energy suppliers have faced demands of their own over the past year, as uncertainties over supplies from Russia increased market instability and led to volatile prices.
But prioritising vulnerable customers struggling to pay their bills during this winter is critical, Ofgem said.
CEO Jonathan Brearley said: "This winter will be challenging, especially for those struggling to pay their energy bills.
"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.
“We have reviewed suppliers on how they help customers who are having trouble paying their bills, particularly those who are vulnerable, and found some suppliers have fallen short of the standards Ofgem expects.
"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."
He added: "We will now work with companies on where they can improve, and I all urge all suppliers to step up to the challenge."
Further improvements suggested to energy suppliers includes:
- Adequate training materials so staff can do their jobs to support customers
- Management oversight on the quality of customer engagement
- Evidence of policies or processes to identify thresholds for important payment plans
- Evidence showing how suppliers ensure these plans are being set in a fair and consistent manner
- Clarity over how payment plans are reassessed if customers’ circumstances change
- Information provided on company structures to understand how issues are identified, raised, and dealt with
- Clear company governance
Ofgem has also sent a letter to all its suppliers explaining the standards expected of them and information on best practice.
The next market review will look at customer vulnerability and will be published later this year.
A Utilita spokesperson said: "We’re very disappointed in the conclusions Ofgem has made following its latest Market Compliance Review, especially its decision to issue a Provisional Order rather than to engage with us.
"We remain in discussions with Ofgem to further explore the concerns raised.
"Our staff are deeply committed to helping customers through the cost-of-living crisis and the financial support we offer is extensive.
"In 2022 alone, we will provide financial assistance more than a million times to customers who need our help."
Scottish Power said it was disappointed with the conclusion despite its staff's efforts.
A spokesperson said: "We’re disappointed that all of the effort our staff make to help our customers manage affordability challenges has resulted in this conclusion from Ofgem.
"We will now work with Ofgem to implement their recommendations.”
The Mirror Online has contacted TruEnergy for comment.
