Energy bills: Which suppliers Ofgem named as not offering enough support to struggling customers?

PEOPLE across the UK have been struggling to cope with soaring energy bills.
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Energy suppliers are obliged to work with customers to help them with the rising costs.

Ofgem have issued a warning to some businesses who have not offered enough support, finding ‘severe weaknesses’ in some cases.

This comes as the UK economy is facing severe pressures.

After a full review, Ofgem has announced that most energy suppliers must improve help offered to customers struggling to pay with their energy bills. Picture: Matt Cardy/Getty Images.After a full review, Ofgem has announced that most energy suppliers must improve help offered to customers struggling to pay with their energy bills. Picture: Matt Cardy/Getty Images.
After a full review, Ofgem has announced that most energy suppliers must improve help offered to customers struggling to pay with their energy bills. Picture: Matt Cardy/Getty Images.
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Chancellor Kwasi Kwarteng’s mini-budget has seen the pound fall to a record low of 1.0327 against the US dollar yesterday morning.

The currency has recovered slightly this morning, steadying on Asian markets.

With a bleak economic outlook, energy firms are encouraged to help their struggling customers, but some are not doing enough.

UK Chancellor of The Exchequer Kwasi Kwarteng announced the mini-budget on September 23. Picture: Carl Court/Getty Images.UK Chancellor of The Exchequer Kwasi Kwarteng announced the mini-budget on September 23. Picture: Carl Court/Getty Images.
UK Chancellor of The Exchequer Kwasi Kwarteng announced the mini-budget on September 23. Picture: Carl Court/Getty Images.

Which energy suppliers are not supporting customers enough, according to Ofgem?

The regulator warned most UK energy suppliers need to make improvements to meet their obligations to support customers struggling to pay their bills.

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Ofgem said all but one of the gas and electricity providers need to improve processes and governance to protect customers with payment difficulties.

Following a market review, three suppliers had ‘severe weaknesses’ in the way they support struggling customers.

These are TruEnergy, Utilita and ScottishPower.

Five other businesses – E, Good, Green Energy, Outfox and Bulb – were found to have some issues in the support they provide.

Utilita and ScottishPower have been served provisional orders, requiring them to take urgent action.

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Ofgem is considering whether further enforcement action is needed for other suppliers.

The regulator found that eight suppliers, Ecotricity, EDF, E.ON, Octopus, OVO, Shell, Utility Warehouse and So Energy/ESB Energy, had minor issues with their support for struggling customers.

British Gas was the only supplier found not to have any significant issues.

What problems did Ofgem find?

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, while others had a ‘non-existent’ policy relating to struggling customers.

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All of those identified have been asked to submit information to Ofgem to set out how they will improve.

Ofgem response

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 urge all suppliers to step up to the challenge.’

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Ofgem has written to all suppliers outlining the standards expected of them.

While Ofgem said good practice does exist across the sector, a raft of failures were identified, including a lack of management oversight in the quality of customer engagement and not enough adequate training materials for staff.

It also said in some cases it was not clear how payment plans would be reassessed if customer circumstances change, while there was a lack of information on company structures to understand how issues are identified, raised, and dealt with ‘from ground level to executive level’.

There is also a need for clearer governance, including escalation routes and levels of delegation and decision-making – meaning customer risks are left exposed, said Ofgem.

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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.

How many people are seeking help?

Citizens Advice said by the end of August its frontline staff had supported a record-breaking more than 15,000 people who were unable to top up their prepayment meter.

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Citizens Advice chief executive Dame Clare Moriarty said: ‘Today’s review cements what struggling customers already know: some energy companies are falling drastically short of the mark.

‘This is utterly unacceptable given the huge cost-of-living pressures people are facing.

‘Suppliers need to up their game and Ofgem needs to hold them to task.

‘With a tough winter ahead we must also see a ban on backdoor disconnection tactics like pushing people in debt on to prepayment meters.’

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Citizens Advice is urging Ofgem to introduce a ‘consumer duty’, similar to the approach being adopted by the Financial Conduct Authority to upgrade consumer protection, to make companies directly responsible for the outcomes their customers experience.