Regulator Ofgem says most energy companies need to make improvements in how they help people who are struggling to pay bills. Ofgem has already issued Provisional Orders to Utilita and ScottishPower, requiring specific and urgent actions, and the regulator will also consider whether enforcement action is warranted for other suppliers.
Amongst the findings were companies with non-existent policy relating to customers in payment difficulties, a lack of management oversight in the quality of their customer engagement and a lack of adequate training materials.
Jonathan Brearley, Ofgem CEO, said: “This winter will be challenging, especially for those struggling to pay their energy bills. Although the government’s package of support will provide some welcome relief, it's critical that, going into this tough winter, energy companies prioritise the needs of vulnerable customers struggling to pay their bills.
“We have reviewed suppliers on how they help customers who are having trouble paying their bills, particularly those who are vulnerable, and found some suppliers have fallen short of the standards Ofgem expects. We accept that there are many pressures on energy companies in the market this Winter, but the needs of vulnerable customers must be part of their top priorities. We will now work with companies on where they can improve, and I all urge all suppliers to step up to the challenge."
In the deep dive across suppliers, although lots of good practice was found, Ofgem found evidence in places that there was a lack of:
- Adequate training materials so staff can do their jobs to support customers – (eg customer service operators lacking relevant training in order to ascertain a customer’s vulnerability / circumstances)
- Management oversight on the quality of customer engagement
- Evidence of policies or processes to identify thresholds for important payment plans and how suppliers ensure these are being set in a fair and consistent manner
- Clarity over how payment plans are reassessed if customers’ circumstances change
- Information provided on company structures to understand how issues are identified, raised, and dealt with from ground level to executive level
- Clear company governance, including escalation routes and levels of delegation and decision-making - meaning customer risks are left exposed
As well as publishing the outcome of the review today, Ofgem has also sent a letter to all suppliers outlining the standards expected of them – as well as best practice information.
The next market review will look at customer vulnerability and will be published later this year.
