Ofgem has ordered UK Energy Incubator Hub to stop taking on new accounts until it has addressed evidence of poor customer service and complaints handling.
The regulator issued the supplier, which trades under the Northumbria and Neo Energy brands and was previously know as Euston Energy, with a provisional order compelling it to take action.
Specifically, UK Energy must ensure customers can easily contact them by telephone and email and that complaints are resolved in a timely manner. Ofgem has also demanded that the company implements and delivers all outstanding remedies set out by the Energy Ombudsman by Monday (9 June). UK Energy must also pay £190,000 to the Ombudsman next week. It has also been ordered to engage “fully and properly” with Citizens Advice over outstanding issues.
Until these measures have been carried out, UK Energy is banned from acquiring any new customers or upgrading existing accounts to dual fuel.
The retailer, which serves c3,000 customers, received a separate provisional order from Ofgem in March, ordering it to provide key financial information. The following month, the regulator applied to the High Court for an injunction to compel UK Energy to provide the information – only the second time it has taken such a step. This original provisional order was revoked on 18 May after the supplier eventually provided the information requested.
Ofgem warned that if UK Energy fails to comply with the latest order, further enforcement action, including licence withdrawal or financial penalties, could follow.
Its director of enforcement and emerging issues Cathryn Scott said: “Our top priority at Ofgem is to protect consumers and make sure we are holding suppliers of essential services like energy to the highest of standards. Where this is not happening, we will not hesitate to act.”