Scottish Power has been issued with a provisional order by Ofgem compelling the supplier to improve the way it treats customers in debt.
It comes ahead of the publication of findings following the regulator’s full market review into how suppliers ensure they are supporting struggling customers.
A review conducted by Ofgem into Scottish Power’s practices found “a number of apparent failings” around the way it sets debt repayment plans and deals with customers struggling with bills.
The provisional order compels Scottish Power to comply with the relevant licence conditions governing its conduct in this area.
As such, the supplier is required to pause disconnections for those customers with active, agreed or overdue repayment plans of £5 per week (per fuel) or below. It must also contact and review all customers on debt repayment plans of £5 per week per fuel, or below, to ensure they are based on their ability to pay.
All call scripts, training materials, policies and communications with customers must be reviewed and updated. Training must be provided for staff to ensure they “reflect that there is no default minimum repayment amount when sufficient information is available on a customer’s ability to pay”.
The supplier must commission an independent audit of its own processes to assess whether they have been effectively implemented and provide the report to Ofgem by no later than 31 October.
Furthermore, it must fully engage with Citizens Advice, Citizens Advice Scotland’s Extra Help Unit and Ombudsman Services to ensure all referrals and off supply incidents are reassessed in line with the service level conditions.
Finally, Scottish Power must continue to engage with Ofgem to ensure compliance with the relevant licence conditions and other provisions of the provisional order.
A Scottish Power spokesperson said: “We’re disappointed that all of the effort our staff make to help our customers manage affordability challenges has resulted in this conclusion from Ofgem.
“We will now work with Ofgem to implement their recommendations.”
This is the second time this month that a supplier has been issued a provisional order by the regulator, with Utilita having already been ordered to improve its treatment of prepayment meter (PPM) customers.
Cathryn Scott, Ofgem enforcement and emerging issues director, said: “These orders to Utilita and Scottish Power are a clear signal to suppliers about the vital importance of protecting customers.
“The rise in cost of living is an increasingly important public issue, and we expect urgent and immediate action on the points raised, as well as constructive engagement with Ofgem during the process.
“Suppliers must consider a customer’s vulnerability and ability to pay to a closer degree, particularly with what is likely to be a very challenging winter for many.”
The cost-of-living crisis will be discussed in more detail at the Utility Week Forum in November. For more information and to book your place click here.