Source · Select Committees · Business and Trade Committee
Recommendation 46
46
Accepted
Paragraph: 187
Ofgem should require energy suppliers to take a pro-consumer approach to payments and debt collections.
Recommendation
Ofgem should require energy suppliers to take a pro-consumer approach to payments and debt collections. We urge Ofgem to take swift and firm action in response to suppliers breaching the Ability To Pay licence conditions and ensure that suppliers promote a range of debt repayment options.
Government Response Summary
Ofgem has announced four Market Compliance Reviews to drive improvement across the market, including one focused on how suppliers support customers in debt or payment difficulty and is taking enforcement action where necessary.
Paragraph Reference:
187
Government Response
Accepted
HM Government
Accepted
Ofgem has announced four Market Compliance Reviews to drive improvement across the market. The second Market Compliance Review, published on 27 September, focused on how suppliers support customers in debt or payment difficulty, along with suppliers’ compliance with the Ability to Pay licence obligations. The review found that although good practice exists across the industry, most suppliers need to make improvements in processes and governance to meet their obligations. The majority of suppliers were found to have minor or moderate issues and three were found to have ‘severe’ weaknesses – of which two suppliers have been served with immediate enforcement notices. Given the depth of these concerns, Ofgem issued Provisional Orders to Utilita and ScottishPower requiring specific urgent actions and is considering whether enforcement action is warranted for other suppliers. Ofgem has also sent a letter to all suppliers outlining the standards expected of them and best practice information. The next market review will look at customer vulnerability and will be published later this year.