Energy giant Utility Warehouse ordered to pay £1.5million after failing customers in debt

Energy giant Utility Warehouse has been fined £1.5million, after an investigation found it failed to adequately support those who were struggling in debt.

Customers were not consistently offered support, such as debt repayment plans and energy efficiency advice, which left some of its customers disadvantaged, regulator Ofgem today said.

Following an investigation, the energy company accepted that it had ‘failed to consistently treat customers fairly’, which resulted in some customers facing increased financial hardship.

Ofgem, the energy regulator, was made aware of the failings following an audit report in 2018.

A formal investigation was then opened which found that Utility Warehouse’s failings took place between 2013 and 2019.

Customers were not consistently offered services, such as debt repayment plans and energy efficiency advice (Getty Images)

It found the supplier did not consistently offer to put domestic customers struggling to pay their energy bills on debt repayment plans, to allow payments to be taken direct from customers’ benefits or to take into account customers’ ability to pay when calculating regular instalments as required.

Customers were also not consistently offered the option of paying back charges via the voluntary installation of a pre-payment meter or offered energy efficiency advice on how to reduce their bills.

In some cases, this led to the unnecessary installation of pre-payment meters under warrant.

Cathryn Scott, director of enforcement and emerging Issues at Ofgem, said: “Energy suppliers are required to look after their customers, especially those in vulnerable situations.

“Between 2013-2019, Utility Warehouse failed to take the necessary steps to treat some customers in payment difficulty fairly, depriving them of the opportunity to manage their energy debt and ongoing energy costs.

“While the unprecedented and unexpected rise in gas and electricity prices over recent months has put energy markets under severe strain, we expect suppliers to continue to comply with their licence obligations and treat people fairly, including by providing support to vulnerable consumers. Where we see poor behaviour, Ofgem will be ready to step in and take swift action.”

The supplier will now pay £1.5million to Ofgem’s voluntary redress fund for its failings.

However the money won't go into customers' pockets and will instead go towards the regulator's funding for vulnerable customers.