Energy suppliers are letting down vulnerable customers as prices soar ahead of winter, according to Ofgem.
The sector's watchdog has warned that 'suppliers need to do more to support consumers', with all 17 participating firms told they must improve services offered to their most vulnerable customers. Five suppliers were found to have 'severe weaknesses', and a further five criticised for 'moderate weaknesses'.
But suppliers have hit back at the review, calling it 'incomplete' and saying supporting customers is a 'top priority'.
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Good Energy, Outfox, SO Energy, Tru Energy and Utilita received the harshest criticisms from the review, which looked at factors including whether they were offering free gas safety checks to eligible households, identifying those on pre-payment meters who are vulnerable, and providing information to customers.
Examples of weaknesses shown by firms included suppliers failing to read customer's meters when they couldn't themselves, suppliers setting debt repayments so high that customers felt they could not top-up their pre-payment meters.
Neil Lawrence, Ofgem's director of retail, said 'good practice' was being shown by some firms, but that there was still 'much more to be done'.
He added: "We've seen a number of failings across the board which need to be urgently addressed. It's going to be a very challenging winter for everyone and customers must be confident they are getting the help and support they need."
But some suppliers have hit back at the report, insisting they do have robust support in place for those who need it. Simon Oscroft, co-founder of So Energy, said: "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."
A spokesman for Utilita said: "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."
And Energy UK, which represents suppliers, said many firms had gone beyond what they were required to do by the regulator.
"Identifying and supporting vulnerable customers is already a top priority," said Dhara Vyas, director of advocacy at Energy UK.
"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."
The regulator ranked firms in its review in three categories:
- Severe weaknesses: Good Energy, Outfox, So Energy, Tru Energy and Utilita
- Moderate weaknesses: E (Gas & Electricity), Ecotricity, Green Energy UK, Octopus and Shell
- Minor weaknesses: British Gas, Bulb, EDF, E.ON, Ovo, Scottish Power and Utility Warehouse
Rocio Concha, Which? director of policy and advocacy, said: “It’s hugely concerning to see Ofgem has found that so many energy firms are falling short on the support they provide to their most vulnerable customers.
“Energy firms must urgently up their game and do everything they can to support their customers through this crisis, especially those most in need.”
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