British Gas is the only energy supplier that provides enough support for customers struggling financially, a report by Ofgem suggests.
The energy watchdog warned that other suppliers need to make serious changes to how they support customers as the cost of living crisis worsens. All suppliers have obligations to meet to support customers who are struggling to pay their bills.
Following a full market review, Ofgem found that three suppliers – TruEnergy, Utilita and ScottishPower – had “severe weaknesses” in how they support struggling customers, while five – E, Good, Green Energy, Outfox and Bulb – were found to have some issues in the support they provide.
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Utilita and Scottish Power have already been served with provisional orders, which require them to take urgent measures, while Ofgem is considering whether further enforcement action is needed for other suppliers. In their findings, Ofgem identified companies failing to identify which customers were struggling with payments, and a lack of help given to those needing crucial payment plans, while others had a “non-existent” policy relating to struggling customers.
Jonathan Brearley, chief executive of Ofgem, said: “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. We will now work with companies on where they can improve, and I all urge all suppliers to step up to the challenge.”
The regulator found that eight suppliers – Ecotricity, EDF, E.ON, Octopus, OVO, Shell, Utility Warehouse and SO Energy – had minor issues with their support for struggling customers. Ofgem has written to all suppliers outlining the standards expected of them.
Mr 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.”
Ofgem’s next “deep dive” market review will look at customer vulnerability and will be published later this year.
In response to the study, 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."
A ScottishPower 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.”
An EDF spokesperson said: "We are aware of Ofgem’s announcement following the Customers in Payment Difficulty Market Compliance Review. We take the matter of supporting customers in payment difficulty extremely seriously. We are committed to supporting all our customers through the current cost of living crisis and we provide a range of bespoke support. We will continue to work with Ofgem to ensure our processes fully reflect our commitment to our customers.”
A Bulb spokesperson said: "We know this winter will be challenging, and many people are worried about the impact of the rising cost of living. We're reviewing these findings and are working hard to help our customers who need extra help and support.”
The Manchester Evening News has also contacted TruEnergy, E, Good, Green Energy, Outfox, Ecotricity, E.ON, Octopus, OVO, Shell, Utility Warehouse and SO Energy.
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