Ofgem ban on Economy Energy over poor customer service

4 Jan 2019 11:18 AM

Ofgem has banned Economy Energy from taking on new customers until it resolves its customer service issues.

The provisional order against the supplier also bans it from requesting one-off payments and increasing direct debits.

The ban will initially remain in place for up to three months in order for Economy Energy to take steps to:

Improve and expand its customer contact procedures via email and webchat
Address its billing and payment failures
Issue customer refunds in a timely manner

If Economy Energy fails to make improvements within three months, Ofgem can confirm the provisional order to extend the ban.

Ultimately, if the supplier fails to improve Ofgem can take steps to revoke its licence.

Ofgem has taken action due to the decline in the standards of Economy Energy’s customer service, complaints handling processes and standards, and billing and payment procedures.

Anthony Pygram, director of conduct and enforcement, recently said:

“Ofgem is taking action to protect customers from suffering more harm from the unacceptable level of customer service provided by Economy Energy. We expect the supplier to take immediate action to rectify its failings or face having its ban extended.

“All suppliers are required to treat their customers fairly. Where they do not, Ofgem will take the necessary steps to ensure suppliers change their behaviour and to prevent further harm to customers.”

Notes to editors

The issuing of a Provisional Order does not imply that Ofgem has found conclusive evidence of a breach at this stage.
For more information, see Economy Energy: Provisional Order. If Economy Energy fails to improve its service within these deadlines, Ofgem may confirm the provisional order, and ultimately could revoke its licence.
Economy Energy currently has three open investigations:

Investigation into whether Economy Energy, E and Dyball Associates have infringed Chapter I of the Competition Act 1998 (September 2016)
Investigation into Economy Energy’s sales and marketing obligations (September 2016)
Investigation into Economy Energy’s compliance with its Renewables Obligations(November 2018)

Further information

For media, contact:

Michelle Amos: 0207 901 1881

Media out of hours mobile: 07766 511470 (media calls only)

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