Ofgem investigates Economy Energy

Ofgem has launched an investigation into Economy Energy to review whether the company has complied with its license conditions when communicating with customers.

The investigation will review whether Economy Energy has taken reasonable steps to communicate the main terms of its contract to customers; given them the mandatory 30 days’ notice of a price rise; and communicated complete and accurate information in its marketing and telesales activities.

It follows a provisional order in February, issued after the regulator was alerted to a high level of customer complaints regarding Economy Energy by watchdog Consumer Futures. The order required Economy Energy to stop selling contracts to new customers, start operating more call centres to handle customers’ queries, and give its customers adequate notice of a price rise. The order against acquiring new customers still stands.

An Ofgem spokesman said: “We have launched an investigation into the way Economy Energy marketed gas and electricity to its customers and whether they gave the required 30 days’ notice to customers of a price rise. The period under investigation relates to sales made before February 2014, prior to our decision to impose a Provisional Order on Economy Energy for other issues. The provisional order that prevents Economy Energy from selling, remains in place and sets out clear steps they need to take within specified timescales.”

Economy Energy supplies gas and electricity to around 50,000 customers across the UK. Utility Week contacted the company for comment, but it had not responded at the time of going press.