Ofgem fines Utility Warehouse £1.5m for failing to treat customers fairly

by | Nov 10, 2021

Energy provider Utility Warehouse has been fined £1.5m by Ofgem for failing to consistently treat customers fairly during the period from 2013 to 2019.
The energy regulator said on Wednesday that this resulted in some customers being disadvantaged and facing increased financial hardship. The money paid will go into Ofgem’s voluntary redress fund.

A formal investigation found that Utility Warehouse did not consistently offer to put domestic customers struggling to pay their bills on debt repayment plans, to allow payments to be taken direct from customers’ benefits or take into account their ability to pay when calculating regular instalments.

Ofgem said customers were not consistently offered the option to pay back charges through the voluntary installation of a pre-payment meter or offered any advice on energy efficiency and how to reduce bills.

Cathryn Scott, director of Enforcement and Emerging Issues at Ofgem, said: “Energy suppliers are required to look after their customers, especially those in vulnerable situations. Between 2013-2019, Utility Warehouse failed to take the necessary steps to treat some customers in payment difficulty fairly, depriving them of the opportunity to manage their energy debt and ongoing energy costs.

“While the unprecedented and unexpected rise in gas and electricity prices over recent months has put energy markets under severe strain, we expect suppliers to continue to comply with their licence obligations and treat people fairly, including by providing support to vulnerable consumers. Where we see poor behaviour, Ofgem will be ready to step in and take swift action.”

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