Business and Energy Secretary Grant Shapps has given energy bosses a deadline of Tuesday, February 7 to report back to him on what remedial action, such as providing compensation, they plan to take should they have 'wrongfully' installed prepayment meters in the homes of vulnerable customers.
It comes in the wake of British Gas admitting fault as a result of an investigation by The Times newspaper, which discovered that people with small children or medical conditions have not been shown forbearance, with reports of debt collectors breaking into homes to install the equipment. The findings follow on from several reviews by Ofgem of the services provided by energy suppliers, which have not identified this unacceptable behaviour and have, in some cases, given companies a clean bill of health.
In a letter on Sunday, the Business Secretary has told Ofgem to toughen up on energy suppliers and investigate the customers’ experience of how their supplier is performing.
Mr Shapps called on the energy regulator to set up a new customer reporting system for households to pass on their own stories of how they are being treated - especially those who are vulnerable.
Business and Energy Secretary Grant Shapps said: “ I am appalled that vulnerable customers struggling with their energy bills have had their homes invaded and prepayment meters installed when there is a clear duty on suppliers to provide them with support.
“They need to refocus their efforts on their consumers, the British public, who are at the receiving end of this abhorrent behaviour.
“I’m also concerned the regulator is too easily having the wool pulled over their eyes by taking at face value what energy companies are telling them. They need to also listen to customers to make sure this treatment of vulnerable consumers doesn’t happen again.”
The regulator has also been asked to toughen up their reviews, going beyond the company headquarters to find out what is really happening in people’s homes by hearing from them directly and engaging more with charities and other groups that represent consumers.
Currently, energy suppliers are required to provide Ofgem with information to demonstrate how they comply with the rules on supporting vulnerable consumers, on customers struggling to pay and on the fitting of prepayment meters.
The Business Secretary wants to see the voices of consumers and those who champion their needs heard when deciding which energy companies are meeting expectations - with a customer reporting hotline being just one example we would want the regulator to consider.
Last week, a number of suppliers announced they would suspend forced installations after being pushed by Ofgem to pause the practice while they reassure the regulator they’re complying with the rules.
However, just over a week ago the Business Secretary launched a crackdown on the mistreatment of energy users by suppliers, already asking them to voluntarily commit to stopping this practice. He also demanded they share the number of warrants they’ve applied for in recent months and plans to publish the findings.
The Energy and Climate Minister, Graham Stuart MP, also met British Gas CEO Chris O’Shea and expressed his horror at recent reports. He made it clear this kind of behaviour is unacceptable, especially from such a key and longstanding British company.
He urged Mr O’Shea to take immediate steps to repair the damage done to British Gas’ reputation and urgently come back to him outlining the role he will personally take to fix these cultural issues.
The British Gas boss was also told by the Minister that vulnerable, mistreated customers need to be identified and redress provided.
Mr Stuart said he will be monitoring matters extremely closely to make sure this happens.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
READ NEXT
Check how much of the £1,350 cost of living payments you are due this year
Households waiting on new £200 Alternative Fuel Payment to receive cash help from next month
DWP shares when people can expect further eligibility criteria for new cost of living payments
UK Government announces new energy support scheme for businesses until end of March next year
Full list of one-off payments for parents and households due over the next 12 months
