Ofgem recently warned that most of the UK’s energy suppliers need to make improvements to meet their obligations to support customers struggling to pay their bills. The energy regulator said all bar one of the gas and electricity providers need to improve processes and governance to protect customers with payment difficulties.
Following a full market review, it found that three suppliers, Scottish Power, TruEnergy and Utilita, had ‘severe weaknesses’ in the way they support struggling customers. Meanwhile five, E, Good, Green Energy, Outfox and Bulb, were found to have some issues in the support they provide.
Utilita and Scottish Power have already been served with provisional orders, which require them to take urgent measures, while Ofgem is considering whether further enforcement action is needed for other suppliers.
Ofgem said it uncovered failures in companies being able to identify customers in payment difficulty and a lack of help given to those needing crucial payment plans, while others had a ‘non-existent’ policy relating to struggling customers. British Gas was the only supplier found not to have any significant issues.
All of those identified have been asked to submit information to Ofgem to set out how they will improve.
Customers wondering what support their provider can offer and how to go about asking for it may find a short guide created by Les Roberts, content manager at Bionic, useful.
Support your energy supplier can offer
Les explains: “The most important step to take if you feel you cannot afford your energy bill is to contact your supplier as they are obliged to outline your options, such as organising a payment plan.”
Under official Ofgem rules, your provider must organise an affordable payment plan and as part of this, consumers have the right to ask for a bills review to see if the amount is correct, a break from payments until you can afford to pay, a reduction to an affordable rate, access to advice on how to reduce energy usage or more time between payments.
Your provider must also give you access to any available hardship funds, charitable grants or help you apply for any available government grants if they have not been automatically applied.
What can my supplier do if I cannot pay my bill?
Les explains: “Your supplier is obliged to give you at least 28 days to repay any debt you fall into before they take action. After this point, your supplier can take steps to install a prepayment meter in your home but they have to give at least seven days notice.”
Les added that the prepayment meter should be a last resort as your provider should first offer a repayment plan or help setting up a repayment plan through your state-funded benefits.
However, he also warns: “If all the above conditions are met and your supplier does supply you with all the above assistance and you still refuse to pay, they do have the right to gain a warrant to enter your home and install a prepayment meter or they could change your smart meter setting to a pay as you go set up.”
Your provider is also obliged to move your prepayment meter to a more accessible location if you are struggling to access it. For example, if you are disabled or have limited mobility and the prepayment meter has been installed out of your reach.
Extra support for vulnerable energy customers (Priority Services)
If you are classed as a ‘vulnerable’ individual, for example if you are disabled, chronically ill, have reached State Pension age, are pregnant or have a mental health condition, you should be able to access priority services from your energy network.
Your energy network is different to your energy provider.
Les explains: “While your provider sends you a bill, your network supplies the energy in your area. Find out who the network is in your area and apply for priority services using a form on their website.”
Priority services your network may be able to provide include:
- Sending someone to check your meter regularly if you are unable to do so
- Providing you with hot meals if you have regular power cuts.
What to do if your supplier is not giving you support
Les explains: “Find your energy provider’s contact details either online or on your latest energy bill and file a complaint with them, either online, by phone or letter. Make sure to keep a record of any past correspondence, such as emails asking for support which went unanswered. Keep a record of correspondence dates so you can prove you have been left without an answer.”
You can also contact Citizens Advice who may be able to help with your complaint and provide a template complaint letter.
You can also go to the Energy Ombudsman, a service which handles disputes between providers and consumers, if your complaint has been unanswered, or you are not satisfied with the reply after eight weeks.
Les explains: “If you cannot come to an agreement with your provider they are obliged to help you contact the Energy Ombudsman. This service is approved by Ofgem.”
Bionic has a range of energy guides to help businesses across the UK, you can find them online here.
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