Ofgem fines UK’s largest electricity distribution network for failing to support vulnerable customers
The UK’s largest electricity distribution network operator has agreed to pay nearly £15m it failed to provide in support to some of its most vulnerable customers.
Western Power Distribution (WPD) was sanctioned by market regulator Ofgem, after failing to provide information, advice and services to energy users on its priority services register (PSR).
The voluntary redress payment consists of £3.7m levies for each of the four licences it operates.
Ofgem determined that WPD, which has around 1.7m PSR customers, did not manage to promptly notify and update energy users affected by power cuts about when power would be restored and what assistance was available.
WPD was also found to have failed to promptly provide specific information on how to prepare for power cuts for the majority of its newly added PSR customers.
Its investigation further revealed that WPD failed to ensure all staff visiting the homes of customers, including those in vulnerable circumstances, had sufficient background checks, in particular disclosure and barring (DBS) checks.
Network companies are required to provide additional services to households in vulnerable circumstances, with six million customers currently on the PSR nationwide.
Services include providing prompt information and advice during unplanned power cuts to PSR customers, who could find a loss of electricity supply particularly difficult.
This helps more vulnerable customers take steps to keep themselves safe and access any additional assistance from network companies.
Examples of additional assistance include mobile power generators, hot meals and drinks, alternative accommodation and on-site welfare units.
Ofgem first launched an investigation into WPD’s compliance with its PSR obligations in 2020.
Following a lengthy engagement with Ofgem, WPD has acted to address all areas of concern, changing its policies, procedures and processes.
Cathryn Scott, director of enforcement and emerging issues at Ofgem, said: “WPD did not meet all of its obligations to provide additional support to some of its most vulnerable customers to safeguard their well-being. In our view it also took too long to put this right. This is totally unacceptable.”
“Our enforcement against the company sends a strong message that when companies fail to provide the required services to their Priority Services Register customers, Ofgem will take action.”
Energy users are currently experiencing historic hikes in household bills, with the consumer price cap spiking 54 per cent to nearly £2,000 per year.