UPDATE: Tuesday 8th of January
Economy Energy, an energy supplier with about 235,000 domestic customers, has ceased to trade.
Under Ofgem’s safety net, the energy supply of Economy Energy’s customers will continue and prepayment meters can be topped up as normal. The outstanding credit balances of domestic customers will be protected.
Ofgem will choose a new supplier to take on Economy Energy’s customers as quickly as possible. This supplier will contact these customers shortly after being appointed.
The energy regulator, Ofgem, has issued a provisional order banning Economy Energy from taking on any new customers.
The Coventry based energy has also been banned from increasing existing customers’ direct debits or asking for any one-off payments until the issues are resolved.
Before the ban can be lifted, Economy Energy must meet the following requirements:
1. Improve and expand its customer contact procedures via email and web chat
2. Address its billing and payment failures
3. Issue customer refunds in a timely manner
The ban is initially in place for up to three months to allow Economy Energy to take steps to improve their customer service issues.
If Ofgem does not see any evidence that Economy Energy has attempted to make improvements within three months, they can extend the ban.
If Economy Energy fails to improve Ofgem can take steps to revoke its supply licence.
Anthony Pygram, 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.
“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.”