Energy retailers have hit back at the regulator after being deemed to have severe weaknesses in the way they treat vulnerable customers.
On Tuesday (22 November), Ofgem published the results of its latest “deep dive” Market Compliance Review which explored how companies treat customers in vulnerable situations and rated all 17 of the suppliers it looked at as having minor, moderate or severe 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 suppliers were identified as having severe weaknesses – Good Energy, Outfox, So Energy, TruEnergy and Utilita.
Ofgem said a significant proportion of these suppliers’ processes and policies were missing or inadequate, or their data indicated they were not achieving good consumer outcomes.
Following the publication of the review’s findings, several suppliers have criticised Ofgem’s methodology, with So Energy chief executive Monica Collings writing a strong rebuttal on LinkedIn and claiming the supplier was facing “undue scrutiny”.
She said: “We have what I would call an excellent relationship with the regulator, Ofgem. So it pains me to write that on this occasion they are wrong.
“That’s not a defensive, resentful remark and I appreciate that it’s fairly bold as a claim to make. I’m sorry that despite absolute openness and transparency we find ourselves facing undue scrutiny.
“The last two Ofgem reviews that we have participated in have seen us be placed in the top two categories of suppliers (and some of the sections of this review we answered in the very same way).
“It is disappointing for everyone who works at So Energy to wake up to these headlines which is not a true reflection of their work. I continue to thank them all for their tireless commitment to customers.”
Meanwhile So Energy’s co-founder Simon Oscroft said the information Ofgem used to make its decisions was “incomplete”.
He said: “So Energy takes our responsibilities to vulnerable customers extremely seriously. Over the course of the last months and weeks, we have provided Ofgem with extensive additional information related to this review and we are disappointed that Ofgem has proceeded on the basis of incomplete information, and in a manner that may now cause vulnerable customers unnecessary concern.”
Referencing Ofgem’s concerns about the potential for prepayment meter customers to self-disconnect, Oscroft said the supplier had “never switched a smart meter equipped customer from credit to prepay without their knowledge and consent”.
Meanwhile, Good Energy chief executive Nigel Pocklington has also come out against the findings.
He said: “It is disappointing that once again Ofgem have published a verdict part way through the evidence-gathering process. Despite providing Ofgem with extensive information which addressed their concerns, it is regrettable that this publication does not account for this.
“Good Energy has an excellent record of taking care of vulnerable customers – including being independently assessed before joining Energy UK’s Vulnerability Commitment which aims to continually improve support – and we will be considering our actions off the back of this report.”
A Utilita spokesperson commented: “Ofgem’s report does not represent where we are as a business today, nor does it acknowledge the significant progress we have made – and are making – since its initial assessment in early summer.
“As such, we look forward to seeing Ofgem’s updated report in the near future.”
In response to concerns raised by So Energy and Good Energy, an Ofgem spokesperson said the regulator’s assessment was based on the evidence suppliers gave in response to its information request.
They added: “We also gave suppliers the opportunity to clear up any misunderstandings or instances where we missed anything before finalising our ratings. However, they do not take into account any improvements that are still being delivered or any actions suppliers still have to take.”
Meanwhile Dhara Vyas, director of advocacy at trade body Energy UK, said “identifying and supporting vulnerable customers is already a top priority for retail suppliers”, adding that many go “above and beyond”.
She continued: “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.”
Speaking to Utility Week in the wake of the regulator’s review, Ofgem’s director of retail Neil Lawrence said: “We are trying to drive standards up by undertaking this series of deep dives and that’s really important so that when customers contact their energy suppliers, they can be confident in a consistent service.
“We’re very pleased with the response that we’re getting from the energy community; suppliers are taking proactive steps, listening to what’s being said, agreeing those action plans and working practically to deliver that.”
He added: “If suppliers fail to take those steps and fail to make those agreed changes, then our further sanctions do include fines, further enforcement action and ultimately licenses can be taken away. This is an essential service, energy, and customers need to be treated fairly when they contact their energy provider.”