FAMILIES across the UK are reportedly being blocked from signing up to the largest energy suppliers, which could be in breach of their licence obligations.
It has been reported that the five largest energy companies are discouraging customers from signing up for their service, instead advising them to stay with their current suppliers. According to industry watchdog Ofgem, energy suppliers are obliged under conditions of their licence to take on new customers.
Reports emerged of people not being able to find a new supplier - with some being told by firms that they would not be offered quotes when they applied online.
Student and retail worker Michael Donagy told The Guardian that he had been unable to open an account with a new supplier after moving to a new home, since he couldn’t find a firm that would respond to his online queries.
He said: “When I filled out the web form for the current supplier, a message told me to stick to my current provider.
“I’ve tried to call and it was a task just finding a phone number on the website, and I’ve spent a total of three hours on hold without getting through.”
Ofgem launched a “switching programme” back in July to help customers change firm in a bid to make the sector more competitive.
However, since then, the onset of the energy crisis has ended competitive fixed-price contracts – with the new energy price cap usually the cheapest available.
The energy price cap had been set to skyrocket £3549 from October but that figure was recently lowered to £2500.
British Gas, E.ON, EDF, ScottishPower and Ovo Energy all said they would not offer a quote online, and that it would be best for customers to stick with their current supplier.
British Gas confirmed on an online chat that it would not accept new customers as Ofgem had recommended consumers stay put while prices remained likely to fluctuate.
EDF and ScottishPower both said they would offer a standard variable rate to customers who got in touch by telephone, an option not advertised on their websites.
Meanwhile, EDF’s contacts page informed customers only to call by phone in an emergency, while ScottishPower redirected consumers to their website because of a high volume of phone calls.
A spokesperson for E.ON said: “With energy prices at a record high, it is recommended that customers stay with their existing supplier. However, customers can sign up to receive an alert as soon as we are in a position to offer competitive fixed-price tariffs for new customers, or can call us to discuss their tariff.”
British Gas and Ovo have been contacted for comment.
Ofgem denied British Gas’s claim that the watchdog had recommended customers should not switch to another supplier.
A spokesperson said: “In fact, suppliers must take on new customers when approached by them.”
Ofgem would not confirm whether energy firms blocking new customers from signing up had come to its attention. However, it did say that it had investigated companies suspected of breaching one or more of their licence conditions.
The watchdog later added: “We hold suppliers to account on [accepting new customers] by using all forms of intelligence shared with us.”
Firms such as Octopus Energy have been taking on new customers but the company has also declined requests for online quotes while advising consumers to stay put with their current supplier.
