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Ofgem in talks with industry over ‘deprioritising’

Ofgem has been in discussions with energy networks and retailers over how the industry can respond to the coronavirus pandemic most effectively.

Specifically, the regulator’s chief executive Jonathan Brearley said discussions had centred on what activities they may need to deprioritise in order to do this, and how this might impact on their ability to comply with their various regulatory obligations.

However one industry source said Ofgem had been “late to the party” in issuing advice to suppliers compared to the Department for Business, Energy and Industrial Strategy (BEIS).

“It seems to me that they have accepted that things are now different, they did not initially. Initially the communications a couple of weeks ago said we were expected to meet all obligations”, the source said.

They added that the fact Ofgem has not yet said it disapproves of most suppliers taking it upon themselves to halt installing smart meters, as was announced earlier this week, is a sign the regulator acknowledges a change in situation.

Writing in a blog post Jonathan Brearley said, like other sectors, the call centres across the energy industry are under strain following a significant increase in the volume of customer calls.

He said: “Call centre capacity has been reduced as they migrate to remote working and staffing levels are down because of coronavirus, leading to long call waiting times for customers.

“I would urge customers not to call their energy supplier or network company unless they are in a vulnerable situation or it’s a safety or emergency issue. This will ensure that those trying to get through who are most in need get help more quickly.”

One industry chief, who did not wish to be named, confirmed companies were taking measures to alleviate the influx of calls.

“Some companies are struggling to deliver business as usual”, they added.

Earlier this week Ofgem temporarily paused the publishing of new policy publications on its website, with the exception of legally required releases or information relating to coronavirus only, until a review of its planned work for the year is completed.

An Ofgem spokesperson added that the regulator wrote to suppliers some time ago to stress the importance of taking steps to manage risks and support consumers, adding that Ofgem was regularly speaking to suppliers at senior levels.