Energy companies are “still too slow” when it comes to helping customers who are struggling with debt, a report revealed on Wednesday.
Ofgem’s report shows that though vulnerable customers get more help, energy suppliers are still not doing enough to help manage debt levels.
Ofgem said that the number of disconnections for debt fell to a record low last year – 6 disconnections occurred for electricity and none for gas.
Meanwhile, over 850,000 and 650,000 free services were provided to vulnerable electricity and gas customers respectively in 2018 by suppliers. Ofgem said that these customers received additional support to help manage their energy.
Moreover, the amount of prepayment meters installed by suppliers by force to collect debt dropped by 15% in 2018 – driven by Ofgem’s rules to cut down on this.
Ofgem added however that it is concerned about the high number of meters installed by force on behalf of First Utility (Shell Energy) and Utility Warehouse last year.
“Energy is an essential service, and suppliers must take particular care with those customers who are less able to manage and pay for their energy,” Mary Starks, Executive Director for Consumers and Markets at Ofgem, commented in the report.
“We are pleased that suppliers are making such good progress on getting extra help to vulnerable customers that need it, for example by making their bills easier to access or read,” Mary Starks continued.
“However, some suppliers are simply not keeping up with the rising numbers of customers who owe them money. It’s imperative that suppliers move quickly and efficiently to help struggling customers manage paying back their debts, or risk pushing them further into hardship.”
Shares in Centrica plc (LON:CNA) were down 1.02% as of 12:02 BST Wednesday, shares in Electricite de France SA (EPA:EDF) were down 6.70% as of 12:49 CEST, SSE plc (LON:SSE) shares were also down, trading at -0.2% as of 12:04 BST, and E.ON SE (ETR:EOAN) shares were trading at -1.39% as of 12:50 CEST.
