Ofgem to investigate ‘extremely poor’ practice by energy suppliers

Ofgem has announced that it will investigate cases of poor practice by non-domestic energy suppliers.

The regulatory body has urged suppliers to respond to claims of excessive charges for deposits and deemed rates; lack of offers of contracts; and increases in standing or management charges by 23 November.

In the letter to suppliers sent last week Ofgem stated: “We understand that suppliers may be managing increased market and bad debt risk. However, suppliers should not profit from the current state of the market in a way that negatively impacts customers and must not subvert the intent of the Energy Bill Relief Scheme.”

It added that it plans to release a “best practice guide on debt and disconnection practices” for suppliers by the end of this month.

Emma McClarkin, chief executive of the British Beer and Pub Association, said: “After monitoring these issues closely for months and supplying numerous cases of extremely poor practice by non-domestic energy suppliers from pubs and brewers from across our membership, it is good to see Ofgem recognising and intervening on this issues that has been causing business owners stress, anxiety and extreme extra cost pressures for months.

“Outside of the energy cap, suppliers have sought to make money elsewhere, by increasing prices on other parts of bills not covered by the cap and cancelling contracts at short notice. At a time when energy bills are still crippling pub and brewing businesses it is essential that Ofgem continues to investigate these practices.

“Holding suppliers to account to ensure business owners are not at the mercy of suppliers is an important part of the regulator’s role. Pubs and brewers quite rightly expect to receive fair and transparent deals and we look forward to continuing to work with Ofgem and Government to ensure this.”