Centrica demands Ofgem intervenes to support onboarding processes

According to reports in This is Money, the energy providers claimed administrators had not only slowed the process of handing over customer details, but also taken unnecessary direct debit payments, leaving customers furious.

It comes off the back of a Business, Energy and Industrial Strategy (BEIS) Committee which saw the chief executives of E.ON, EDF, ScottishPower and Centrica give oral evidence on energy pricing and the future of the energy market. 

Centrica boss Chris O’Shea said: “The administrator of the failed company is not incentivised to do anything quickly. They would not give us any information on credit balances.” 

He added that, for the customers that had credit balances and have transferred over, British Gas has had to “set up direct debits for them. 

O’Shea said: “They’re several months into their journey with British Gas. And they’re quite rightly deeply unhappy.” 

He went on to explain his business has pushed Ofgem to push the administrators.

EDF’s chief executive Simone Rossi agreed with the points made by O’Shea. He explained: “Our experience has been awful with administrators. Behaviour that’s contrary to the interests of customers, just looking at the creditors. 

“I understand that’s what they have to do by law, but under the circumstances, this has been aggravating an already difficult situation.” 

The meeting also heard from ScottishPower’s Keith Anderson, who called for the price cap system to be scrapped and replaced by a social tariff, which would be designed to give those struggling a discounted price. 

He highlighted the fact that currently customers on a prepayment meter - a service that has traditionally been used by those who have struggled to pay their energy bills - are being charged more. 

While the introduction of a social tariff would be a longer-term solution. In the short-term Anderson has called for the introduction of a £1,000 deficit fund for those in fuel poverty or who are vulnerable ahead of the expected price cap increase in October.

This would be a fund that can then be repaid over a 10-year period.