Energy suppliers are not doing enough to help low-income and other vulnerable customers during what is expected to be an exceptionally difficult winter, according to regulator Ofgem, which found many showed signs of “severe weaknesses”.
Ofgem’s review included 17 energy firms, including Shell PLC (LSE:SHEL, NYSE:SHEL), which was found to display “moderate weaknesses,” as well as Centrica PLC (LSE:CNA) owned British Gas, Good Energy PLC, Scottish Power and Octopus Energy.
Its review highlighted cases where customers were unable to contact suppliers to top up meters or request support, while firms also occasionally failed to take readings for those who were unable to themselves, as other companies failed to even identify vulnerable customers to offer support.
Ofgem categorised the 17 suppliers based on the severity of the weaknesses they had shown, with severe weakness found in five suppliers: Good Energy, Outfox, SO Energy, TruEnergy and Utilita.
Octopus and Shell were among another five showing moderate weaknesses, while minor issues were identified in the likes of British Gas, Bulb, EDF, E.ON, Ovo, Scottish Power and Utility Warehouse, which is part of Telecom Plus PLC (LSE:TEP).
Suggesting suppliers needed to improve, Ofgem’s Nigel Lawrence said: “It's going to be a very challenging winter for everyone and customers must be confident they are getting the help and support they need.”
Some suppliers attacked the review for being “incomplete,” but Ofgem implied it was being proactive in tackling issues before they became too bad.
Recently Ofgem itself has faced criticism from both ministers, who accused it of failing to prevent energy firms collapsing, while the Unite union lashed out at the regulator for allowing energy distributors to score record profits as customers struggle with high bills.
Previously, a government report determined that on top of high energy prices, customers were facing an extra £2.7bn hit, averaging £94 per bill, after 29 energy suppliers collapsed since July 2021.
Ofgem’s “failure to effectively regulate the energy supplier sector has come at a considerable cost to billpayers,” determined the Public Accounts Committee which published the findings.