Ofgem calls on energy suppliers to do more for vulnerable customers

It follows findings coming from the energy regulator’s third review in a series of “deep dives” into how energy suppliers are helping customers this winter.  

It details how companies are identifying and recording customers in a vulnerable situation, making free gas safety checks available to eligible customers, ensuring vulnerable customers on prepayment meters are identified and supported, and providing useful information appropriate to customer needs.  

Its findings showed that, although some good practice was identified, all suppliers need to make further improvements. It found what it described as severe weaknesses at five suppliers – Good Energy, Outfox, SO Energy, TruEnergy and Utilita – and moderate weaknesses at five more suppliers – namely E (Gas and Electricity), Ecotricity, Green Energy UK, Octopus and Shell.

Finally, Ofgem found minor weaknesses in seven suppliers – these being British Gas, Bulb, EDF, E.ON, Ovo, Scottish Power and Utility Warehouse.  

The regulator said suppliers have engaged positively with the process and, since receiving their indictive ratings in October, are taking action on the improvements that are needed. 

Ofgem director of retail Neil Lawrence 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.   

“We welcome the cooperation from suppliers and action taken so far, and, although we are seeing some very good practice 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.  

“While it’s encouraging to see the engagement on this Market Compliance Review, with some improvement actions already taking place, we’ve seen a number of failings across the board which 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.”   

Credit Strategy has reached out to all 17 of the businesses highlighted by Ofgem. In response, Good Energy chief executive Nigel Pocklington said: “It is disappointing that once again Ofgem have published a verdict part way through the evidence-gathering process.  

“Despite providing Ofgem with extensive information which addressed their concerns, it is regrettable that this publication does not account for this. 

“Good Energy has an excellent record of taking care of vulnerable customers - including being independently assessed before joining Energy UK’s Vulnerability Commitment which aims to continually improve support - and we will be considering our actions off the back of this report.” 

Simon Oscroft, co-founder of So Energy, said: “So Energy takes our responsibilities to vulnerable customers extremely seriously.  

“Over the course of the last months and weeks, we have provided Ofgem with extensive additional information related to this review and we are disappointed that Ofgem has proceeded on the basis of incomplete information, and in a manner that may now cause vulnerable customers unnecessary concern.  

“For the avoidance of doubt, So Energy has never switched a smart meter equipped customer from credit to prepay without their knowledge and consent, and has an approach to customer vulnerability that is in line with our caring and honest values.” 

An EDF spokesperson, meanwhile, said: “We take our duty to support customers in vulnerable circumstances extremely seriously.  

“We’ve increased our customer support fund to £10m this year, providing debt relief and help buying energy efficient white goods and have brought forward funding for energy efficiency measures for those in fuel poverty by £20m this year.  

“We will continue working with Ofgem to ensure we are evidencing the range of support available and identifying opportunities for where we could go further.”

A spokesperson for Utilita said: "We are confident that our customers are happy with the support we provide. Ofgem’s report does not represent where we are as a business today, nor does it acknowledge the significant progress we have made - and are making - since its initial assessment in early summer. 

As such, we look forward to seeing Ofgem’s updated report in the near future. Vulnerable customers continue to make our planned improvements throughout the winter." 

A Bulb spokesperson said: “We know this winter will be challenging, and many people are worried about the impact of the rising cost of living. We’re reviewing these findings and are working hard to help our customers who need extra help and support.”