Ofgem has accused insolvency practitioners appointed to failed energy suppliers of “extremely disappointing” behaviour in their dealings with customers.
The regulator’s head of compliance, conduct and enforcement, Tessa Hall, has written an open letter calling on administrators to agree to set of common standards if they interact with customers of defunct retailers.
Hall said the optimum approach would be to work closely with the appointed Supplier of Last Resort (SoLR) with the administrator providing the final billing positions.
She warned that while Ofgem has no explicit remit to regulate administrators, it has the option to file a complaint, refer the issue to the Insolvency Service or make a public statement about how customers have been treated.
She said: “In recent years we have gained experience working with a range of different insolvency practitioners, and have observed a mixed level of service and regard for consumers, including the vulnerable. Some practices have been very good and some have been extremely disappointing, and we believe some poor practices have led to avoidable consumer harm.”
She went on to point out certain specific areas where she expects administrators to show they are dealing with consumers in a fair and reasonable way.
This included reiterating the stipulation that firms cannot recover money for any unbilled energy that was incurred more than 12 months ago. She also insisted that customers should be presented with a consolidated bill and given options to settle, query and challenge the amount owed as well as given a choice of how to pay.
If debt collectors are brought in, it is the administrator’s responsibility to ensure they behave and communicate with customers in a responsible way.