Energy firmtopay £1.8m in damages
CO-OPERATIVE Energy is paying out £1.8 million in compensation to customers after subjecting them to “unacceptable” levels of service.
Ofgem said the company let customers down in its complaints resolution, call handling and billing processes.
The regulator and Citizens Advice saw a steep increase in complaints after customers were unable to log in to their accounts online, leaving them unable to submit meter readings or check their bill.
Bills were delayed and direct debit updates stopped, and new customers also experienced delay transferring.
Ofgem said Co-operative also took too long to resolve a significant number of customer complaints.
The issues were the result of the introduction of a new IT system in March 2015.
Co-operative has already paid out £1.6 million, and any amount it cannot return will go to the charity StepChange to help energy consumers who are in financial difficulties.
Ofgem senior partner Martin Crouch said: “While customers experienced unacceptable levels of service, Co-operative Energy has done the right thing by taking responsibility for the situation and paying out compensation.
“If trust is to be restored in the energy market, suppliers must make amends to their customers when things go wrong.”
Ben Reid, chief executive of Midcounties Co-operative, said: “As the UK’s only member-owned energy supplier, we put our customers at the heart of everything we do and their interests first.
“We have apologised to those customers who were affected by the problems.”