Economy Energy banned from taking on new customers amid Ofgem probe
Economy Energy has been banned from taking on new customers until it improves its customer service, Ofgem said today.
The energy regulator said it has issued a three month ban on the supplier, which will also prevent it requesting one-off payments and increasing direct debits.
Ofgem said Economy Energy must improve its customer contact procedures, address issues with billing and payment and issue refunds more quickly.
Anthony Pygram, Ofgem director of conduct and enforcement, 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.”
Ofgem also said it could revoke the supplier’s licence if it fails to make improvements.
In addition to the customer service probe, Economy Energy is facing Ofgem investigations into alleged infringement of competition law and the company’s compliance with the government’s renewables obligation scheme.
The investigations concern a suspected anti-competitive agreement between energy firms Economy Energy, E and Dyball Associates, as well as a £59m hole in a green energy fund.
In September Ofgem opened a separate probe into four energy suppliers over poor handling of customer complaints.
A statement on Economy Energy’s website reads: “In response to the recent speculation and circulating misinformation, we would like to provide assurance that we at Economy Energy have no intention of closing our doors.
“We will pay our outstanding ROCs [renewable obligation certificates] obligation in full and business will continue as usual for our customers.”
Gillian Guy, chief executive of Citizens Advice, welcomed the ban, describing it as a “necessary step towards fixing the consistently poor service experienced by Economy Energy customers”.