Utility Warehouse has agreed to pay £1.5 million into Ofgem’s voluntary redress fund following a series of failings concerning its treatment of customers in debt.
Ofgem was made aware of the issues following an audit report in 2018 and subsequently launched an investigation.
Between 2013 and 2019, the multi-utility provider, which serves more than 650,000 customers, did not consistently offer help such as debt repayment plans to those struggling to pay their energy bills.
The supplier did not consistently allow payments to be taken direct from customers’ benefits or take into account their ability to pay when calculating regular instalments.
It also failed to offer some customers the option of paying back charges via the voluntary installation of a pre-payment meter (PPM) or energy efficiency advice on how to reduce their bills. In some cases, Ofgem added, this led to the unnecessary installation of PPMs under warrant.
The supplier additionally submitted some inaccurate social obligation reporting data to Ofgem.
The regulator has since closed the investigation after the supplier accepted its failings and put in place measures in response. It has further agreed to pay £1.5 million into Ofgem’s voluntary redress fund.
Cathryn Scott, director of enforcement and emerging issues at Ofgem, said: “Energy suppliers are required to look after their customers, especially those in vulnerable situations.
“Between 2013-2019, Utility Warehouse failed to take the necessary steps to treat some customers in payment difficulty fairly, depriving them of the opportunity to manage their energy debt and ongoing energy costs.
“While the unprecedented and unexpected rise in gas and electricity prices over recent months has put energy markets under severe strain, we expect suppliers to continue to comply with their licence obligations and treat people fairly, including by providing support to vulnerable consumers.
“Where we see poor behaviour, Ofgem will be ready to step in and take swift action.”
Gillian Cooper, head of energy policy for Citizens Advice, said: “We’re glad to finally see redress for customers at the end of this investigation, but it’s been a long time coming.
“When suppliers break the rules, it’s vital that Ofgem takes swift action to prevent bad practice from becoming the norm.”