Ofgem says it expects energy retailers to take a “proportionate approach” to debt recovery and late payments, amid concerns more people will need support from suppliers during the coronavirus epidemic.
The regulator stressed that all regulatory requirements remain in place for all licensees, adding that it is closely monitoring the situation and will update industry if circumstances change.
“Suppliers should continue to identify vulnerable customers and work to ensure their needs are met. This includes taking a proportionate approach to debt recovery and late payments where appropriate”, Ofgem said in a statement.
It comes as Citizens Advice raised concern around the ability of vulnerable customers to pay their bills, especially those on pre-payment meters (PPM), due to a loss of work through illness.
There are a number of options available for PPM customers to stop them self-disconnecting, including remote top-ups for smart meter customers. Suppliers can even send out pre-loaded top up cards to customers.
Speaking to Utility Week Alex Belsham-Harris, a principal policy manager at Citizens Advice, said the current circumstances may mean more people will need additional support.
He said: “We’d want suppliers to send out a discretionary credit to people and provide them with support to stay on supply. And also think about whether they should reduce or pause debt repayment.
“All of that is really in line with what suppliers are already expected to do under Ofgem rules – to consider whether people are able to make their debt repayments. It’s not necessarily asking them to do anything differently it’s just that circumstances may mean more people need that support.”
EDF Energy, which serves around 5 million UK customers, is one supplier which has publicly said it would consider offering delayed payments to anyone who is affected by the coronavirus outbreak.
Ofgem says it is “critical” that customers remain on supply and that it expects suppliers to take proactive measures to support those on pre-payment meters, including people in vulnerable circumstances. Measures include contacting the supplier when a customer is unable to top up their pre-payment meter, as well as asking a trusted person to help them and take their top-up card to the shop if required.
Belsham-Harris added there were further concerns around the functioning of suppliers themselves, especially if large numbers of call centre staff are unwell.
He added: “We understand that if that happens certain types of contact might need to be prioritised.
“The priority should always be on making sure that those people who are on pre-pay and who might be self-disconnecting, or facing any other emergency situation, can get through in a very timely way to speak to a supplier.
“Any other changes need to be well communicated to customers so that if they aren’t going to be able to get support for providing meter readings or more minor bill queries, they are directed to the right support.
“This should avoid some issues that we saw during the Beast from the East where some companies struggled to manage their call centres because large numbers of staff were not able to get to work.”