Utility faces Ofgem inquiry over indebted customers

THE energy regulator has turned the spotlight on Utility Warehouse to investigate how the Big Six challenger brand treats customers who are struggling to pay their bills.

Ofgem said it will investigate whether the supplier has breached the industry code for dealing with customers who are in debt. The inquiry will focus on the whether Utility Warehouse has offered its indebted customers “appropriate repayment options”, and whether it is misusing warrants to force the installation of pre-pay meters to recover debts.

“This investigation does not imply there’s been any non-compliance by the supplier,” the regulator said. A spokesman for Utility Warehouse said it was “surprised and disappointed” that Ofgem has opened a formal investigation. “An independent audit in 2017 gave an overall positive report with a number of best practice recommendations now having been fully implemented,” he said. “We will, of course, work alongside Ofgem to ensure that this investigation is concluded.”

However, the investigation is likely to heighten concerns over the flood of new energy market entrants hoping to challenge the Big Six suppliers.

Utility Warehouse is the fourth upstart energy firm this week to face regulatory scrutiny after The Sunday Telegraph revealed energy minnows have been pushed to the brink by the increasingly competitive market.