Business and Energy Secretary has today (Feb 5) given energy
bosses a deadline of Tuesday to report back to him on what
remedial action – such as providing compensation – they plan to
take should they have wrongfully installed prepayment meters in
the homes of vulnerable customers.
It comes in the wake of British Gas admitting fault as a result
of the Times investigation which showed even those with small
children or medical conditions have not been shown forbearance,
with reports of debt collectors breaking into homes to install
the equipment.
But these findings by The Times newspaper follow several reviews
by Ofgem of the services provided by energy suppliers, which have
not identified this unacceptable behaviour – or other significant
shortcomings - and have in some cases even given companies a
clean bill of health.
Therefore the Business Secretary has today told Ofgem to toughen
up on energy suppliers and investigate the customers’ experience
of how their supplier is performing.
He called on the regulator to set up a new customer reporting
system for households to pass on their own stories of how they
are being treated – especially those who are vulnerable – and not
just rely on energy firm bosses to share information with their
regulator.
Business and Energy Secretary said:
“ I am appalled that vulnerable customers struggling with their
energy bills have had their homes invaded and prepayment meters
installed when there is a clear duty on suppliers to provide them
with support. They need to refocus their efforts on their
consumers, the British public, who are at the receiving end of
this abhorrent behaviour.
“ I’m also concerned the regulator is too easily having the wool
pulled over their eyes by taking at face value what energy
companies are telling them. They need to also listen to customers
to make sure this treatment of vulnerable consumers doesn’t
happen again.”
News reports across the country have highlighted examples of the
forced installation of prepayment meters in the homes of those
who are struggling to pay their bills.
The regulator has also been asked to toughen up their reviews,
going beyond the company headquarters to find out what is really
happening in people’s homes by hearing from them directly and
engaging more with charities and other groups that represent
consumers.
Currently, energy suppliers are required to provide Ofgem with
information to demonstrate how they comply with the rules on
supporting vulnerable consumers, on customers struggling to pay
and on the fitting of prepayment meters.
The Business Secretary wants to see the voices of consumers and
those who champion their needs heard when deciding which energy
companies are meeting expectations - with a customer
reporting hotline being just one example we would want the
regulator to consider.
On Thursday night a number of suppliers announced they would
suspend forced installations after being pushed by Ofgem to pause
the practice while they reassure the regulator they’re complying
with the rules.
However, just over a week ago the Business Secretary launched a
crackdown on the mistreatment of energy users by suppliers,
already asking them to voluntarily commit to stopping this
practice. He also demanded they share the number of warrants
they’ve applied for in recent months and plans to publish the
findings.
Earlier this week the Energy and Climate Minister also met
British Gas CEO Chris O’Shea and expressed his horror at recent
reports. He made it clear this kind of behaviour is unacceptable,
especially from such a key and longstanding British company.
He urged Mr O’Shea to take urgent steps to repair the damage done
to British Gas’ reputation and urgently come back to him
outlining the role he will personally take to fix these cultural
issues.
The British Gas boss was also told by the Minister that
vulnerable, mistreated customers need to be identified and
redress provided. He will be monitoring matters extremely closely
to make sure this happens.
Notes to editor:
Last month the Business Secretary and Energy and Climate Minister
called energy suppliers to voluntarily stop force fitting
prepayment meters: https://twitter.com/grantshapps/status/1617055839788929024
