The energy regulator has revealed that the vast majority of the country’s energy suppliers have been told to make improvements in how they handle customers struggling to pay their bills.
Ofgem said its review of supplier compliance found that only one firm, British Gas, was meeting its obligations and the rest had to step up at a time when households were facing unprecedented bills amid the cost of living crisis.
It found that three firms – TruEnergy, Utilita and ScottishPower – had “severe weaknesses” while five – E, Good, Green Energy, Outfox and Bulb – were found to have some issues in the help they give customers.
Ecotricity, EDF, E.ON, Octopus, OVO, Shell, Utility Warehouse and So Energy/ESB Energy were found to have only minor issues that would not require possible enforcement action.
Utilita and Scottish Power had already been served with provisional orders requiring them to take urgent measures, Ofgem said.
The regulator said that key failures included companies identifying those in payment difficulty.
It also cited a lack of help given to those needing crucial payment plans, while others had a “non-existent” policy relating to struggling customers.
British Gas, the UK’s largest supplier, was the only firm found to be in compliance with Ofgem’s rules
Ofgem chief executive, Jonathan Brearley, 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 made its announcement just days before the government’s energy price guarantee, which will set a cap on wholesale charges, comes into effect on 1 October.
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Energy costs ‘borne collectively’
The scheme replaces the energy price cap as it will see the taxpayer forking out to shield households from the worst of the raw energy costs expected this winter following Russia’s war with Ukraine.
Mr Brearley added: “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.”