Ofgem proposes to remove restrictions on Economy Energy
Ofgem has yesterday issued a notice proposing to remove the operating restrictions it had placed on energy supplier, Economy Energy. This follows the significant improvements to its customer service standards. Following a consultation period, if the proposal is confirmed, the removal of restrictions would mean Economy Energy is able to sign up new customers.
Economy Energy resolved the majority of the issues that its customers, most of whom are on prepayment meters, had been experiencing. These included putting processes in place to reduce the time it takes to get a customer back on supply, extending call centre opening hours and improving the speed of answering customer calls.
Notes to editors
2. Economy Energy
Economy Energy supplies around 50,000 customers, who are predominantly on prepayment meters, with electricity and gas across Britain. The decision to take this action and impose operating restrictions is not a common practice by Ofgem. The decision to issue Economy Energy with an order reflected Ofgem’s concerns about customer welfare given the complaints and customer service failings. The removal of the majority of restrictions reflects Ofgem’s view that they are now in compliance with those regulations.
Two provisions still remain in place, maintaining robust policies to ensure all complaints and the action taken are recorded and the requirement to comply with obligations concerning transfer blocking. We will continue close monitoring of Economy Energy’s performance.
Ofgem is required to consult for at least 28 days on this proposal and Economy Energy is unable to sign up new customers until after the consultation period and until the proposal to revoke is confirmed.
A Provisional Order is a tool Ofgem has to either stop a company doing something or to require it to take specific action. A Provisional Order is used where behaviour needs to be changed as soon as possible to avoid the risk of loss or damage. Were Economy Energy not to meet our requirements, we have powers to impose a financial penalty on them, or even ultimately to revoke their licence.
In March 2014, Ofgem announced its intention to confirm this order, meaning the measures set out in the order would stay in place indefinitely until Ofgem was satisfied that compliance had been secured and that the measures could be revoked. Ofgem has closely monitored and will continue to monitor Economy Energy’s performance.
For further press information contact:
Lisa O’Brien: 0207 901 7426
Dafydd Wyn: 020 3263 9943
Out of hours media contact number: 07766 511470
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