The vitality regulator has launched an investigation into Utility Warehouse over how the provider treats indebted clients.
Ofgem will deal with whether or not Utility Warehouse, which is a challenger to the large six suppliers, supplied “acceptable reimbursement choices” to clients who had been struggling to pay their payments.
The regulator mentioned its investigation would come with whether or not the corporate complied with guidelines by doing sufficient to try to contact clients in or prone to debt to ascertain manageable reimbursement plans primarily based on their capability to pay.
Document variety of individuals change vitality provider in February
It additionally consists of whether or not they put in prepayment meters appropriately as a way of recovering debt from clients, notably after they put in them below warrant.
The launch of the investigation doesn’t suggest Utility Warehouse has damaged guidelines, Ofgem mentioned.
Utility Warehouse is a mid-sized vitality provider that additionally presents cell, landline and broadband. It claims to have greater than 600,000 clients.
A spokesperson for Utility Warehouse mentioned the corporate is “stunned and disillusioned” that Ofgem has determined to launch a proper investigation into its processes.
“An unbiased audit of those processes late in 2017 gave an total optimistic report with quite a lot of finest apply suggestions now having been absolutely carried out,” he mentioned.
“We’ll, in fact, work alongside Ofgem to make sure that this investigation is concluded,” the spokesperson added.
Utility Warehouse has turn into the newest challenger vitality provider to return below the regulator’s highlight.
Ofgem can also be investigating one other challenger provider, Iresa Vitality, over its complaints dealing with course of.
On Thursday, Ofgem alleged that two extra suppliers, E and Economic system Vitality, breached competitors legislation by colluding to be able to keep away from competing for a similar pre-payment clients in 2016.
A spokesperson for Economic system Vitality mentioned: “Economic system Vitality takes its compliance obligations very significantly and is disillusioned by Ofgem’s announcement. The corporate is presently reviewing the assertion of objections and proposes to submit a strong defence to Ofgem’s allegations via the correct channels sooner or later.”
E couldn’t be reached for remark.
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