Energy regulator Ofgem has published findings in the third of its series of ‘deep dives’ into how energy suppliers are helping customers in winter and beyond.
service standards
Ofgem is committed to driving service standards up for consumers, and, the latest review, which looks specifically at how suppliers treat ‘Customers in a Vulnerable Situation’ has considered information submitted by 17 of the biggest domestic energy suppliers, detailing how the companies are:
- Identifying and recording customers in a vulnerable situation, and if they are adding them to the ‘Priority Services Register’, which offers additional support to customers in need.
- Making free gas safety checks available to eligible customers.
- Ensuring vulnerable customers on prepayment meters are identified and supported.
- Providing useful information appropriate to customer needs.
Assessment Findings
Since Ofgem's initial assessment and ratings were formed, many suppliers have already responded positively based on the feedback from the review. All the actions taken from all the Market Compliance Reviews so far can be seen collectively.
Findings showed that, although some good practice was identified, all suppliers need to make further improvements, with the key findings being:
- Severe weaknesses were found in five suppliers – Good Energy, Outfox, SO Energy, TruEnergy, and Utilita.
- Moderate weaknesses were found in five suppliers – E (Gas & Electricity), Ecotricity, Green Energy UK, Octopus, and Shell.
- Minor weaknesses were found in seven suppliers - British Gas, Bulb, EDF, E.ON, Ovo, Scottish Power, and Utility Warehouse.
an open and cooperative approach
Suppliers have engaged positively with the process and are taking swift action
Suppliers have engaged positively with the process and, since receiving their indicative ratings are taking swift action to make the improvements needed. This open and cooperative approach to improving protections for vulnerable customers is welcomed by the energy regulator.
Neil Lawrence, Director of Retail at Ofgem, said, “From eligible customers who are missing out on free gas safety checks through to companies not identifying vulnerable customers to be offered obvious support on the Priority Services Register, this robust review has highlighted that suppliers need to do more to support consumers."
good practices and initiatives
“We welcome the cooperation from suppliers and action taken so far, and, although we are seeing some very good practices in parts of the industry, we can see there is still much more to be done."
"Most suppliers take the protection of vulnerable customers seriously and several good initiatives to support customers have been launched recently."
proactive
"While it’s encouraging to see the engagement on this Market Compliance Review, with some improvement actions already taking place, we’ve seen several failings across the board that need to be urgently addressed."
"It’s going to be a very challenging winter for everyone, and customers must be confident they are getting the help and support they need. My message to suppliers today is simple- be proactive. Help your customers to know what support is available, and then deliver it.”
Cash grants
Ofgem communicated the ratings to all suppliers recently and has started compliance engagement
Some good practice was also identified as part of the review, with some suppliers offering ‘cash grants towards energy bills for customers, and many energy companies signing up for Energy UK’s Vulnerability Commitment.
Ofgem communicated the ratings to all suppliers recently and, since then, has started compliance engagement on the areas for improvement.
Enforcement Guidelines
The regulator will be keeping a close eye on the actions taken to close the gaps identified through this assessment and will consider enforcement action under its Enforcement Guidelines where necessary.
On the back of this latest review, and supported by Ofgem’s ongoing ‘energy aware’ winter campaign, customers can also check if they are eligible for extra support on the Priority Services Register.
