Retailers ordered to improve treatment of vulnerable customers

Ofgem has ordered a number of energy suppliers to improve the way they deal with vulnerable customers following a “deep dive” into their practices.

The regulator published the findings on Tuesday (22 November) of a Market Compliance Review, which explored how companies treat customers in vulnerable situations and rated them as having minor, moderate, severe or no material weaknesses.

Suppliers were asked how they are identifying and recording vulnerable customers, and if they are adding them to the Priority Services Register, providing free gas safety checks to those who are eligible, ensuring those on prepayment meters are identified and supported, and providing useful and appropriate information.

Five companies – Good Energy, Outfox, So Energy, TruEnergy and Utilita – were identified by the regulator as having severe weaknesses.

Another five companies – E (Gas & Electricity), Ecotricity, Green Energy UK, Octopus and Shell – were found to have moderate weakness, and seven – British Gas, Bulb, EDF, Eon, Ovo, Scottish Power and Utility Warehouse – were found to have minor weaknesses.

Since receiving their indicative ratings last month, Ofgem said suppliers have “engaged positively with the process” and are taking “swift action” to make the necessary improvements.

The regulator’s director of retail, Neil Lawrence, said the “robust review” highlighted the need for suppliers to do more to help consumers.

He added: “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.”

Ofgem said it will consider taking enforcement action against companies if necessary.

Energy UK’s director of advocacy, Dhara Vyas, commented: “Identifying and supporting vulnerable customers is already a top priority for retail suppliers, and many go above and beyond as demonstrated in our good practice summary of our vulnerability commitment.

“This includes setting up and training dedicated teams, providing millions of pounds in customer support funding, partnering with charities and third parties and encouraging people to sign up to the Priority Services Register.

“Our members have responded swiftly to Ofgem’s review – including providing additional documentation to demonstrate where processes were already in place, and will continue to look at all the ways they can make sure people get the help and support they need.”