The 17 energy firms ‘failing’ struggling families: Ofgem slams suppliers after finding some companies set debt repayments so high that customers could not top-up their meters

• Energy regulator Ofgem has blasted 17 energy companies in a new report
• The report found energy firms had flaws in working with vulnerable customers 
• All of the energy companies who took part in the study were criticised by Ofgem

Seventeen British energy suppliers have been blasted by Ofgem and told they have to improve how they deal with vulnerable people after some customers were given debt repayments so high they could not afford to top-up their meters.

It comes as all 17 suppliers who submitted data to the regulator were told they had to improve their practices. 

The firms told Ofgem how they identify and keep a record of which customers are in a vulnerable situation and whether they add them to a priority register.

They also set out to Ofgem whether they were offering free gas safety checks to eligible households, identifying those on pre-payment meters who are vulnerable, and providing information to customers.

The energy regulator said that a review had identified ‘severe weaknesses’ at five suppliers: Good Energy, Outfox, SO Energy, Tru Energy and Utilita.

Ofgem’s director of Retail Neil Lawrence said: ‘From eligible customers who are missing out on free gas safety checks through to companies not identifying vulnerable customers to be offered obvious support on the Priority Services Register, this robust review has highlighted that suppliers need to do more to support consumers.

‘We welcome the cooperation from suppliers and action taken so far, and, although we are seeing some very good practice in parts of the industry, we can see there is still much more to be done.’

He said that ‘most suppliers’ take their responsibility to protect vulnerable customers seriously and that they have launched many new initiatives.

But despite some improvement, he said: ‘We’ve seen a number of failings across the board which need to be urgently addressed.

‘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.

‘My message to suppliers today is simple – be proactive. Help your customers to know what support is available, and then deliver it.’

The report found ‘moderate weaknesses’ at suppliers E (Gas & Electricity), Ecotricity, Green Energy UK, Octopus and Shell. It said that seven others had shown minor weaknesses: British Gas, Bulb, EDF, E.ON, Ovo, Scottish Power and Utility Warehouse.

(Stock Image) Customers face huge energy bills this winter amid the cost of living crisis

Inflation in the UK jumped to 11.1 per cent in October – far worse than predicted by experts

Simon Oscroft, co-founder of So Energy, said: ‘Over the course of the last months and weeks, we have provided Ofgem with extensive additional information related to this review and we are disappointed that Ofgem has proceeded on the basis of incomplete information, and in a manner that may now cause vulnerable customers unnecessary concern.

‘For the avoidance of doubt, So Energy has never switched a smart meter-equipped customer from credit to prepay without their knowledge and consent, and has an approach to customer vulnerability that is in line with our caring and honest values.’

Utilita said: ‘Ofgem’s report does not represent where we are as a business today, nor does it acknowledge the significant progress we have made – and are making – since its initial assessment in early summer.

‘As such, we look forward to seeing Ofgem’s updated report in the near future.’

Rocio Concha, Which? director of policy and advocacy, said: ‘It’s hugely concerning to see Ofgem has found that so many energy firms are falling short on the support they provide to their most vulnerable customers.

‘Energy firms must urgently up their game and do everything they can to support their customers through this crisis, especially those most in need.’

More than half of Britons are worried about their ability to pay for food during the cost-of-living crisis, new polling has found

The research also found more than two-fifths (44 per cent) were worried about meeting rent and mortgage payments

The news comes as Brits struggle with the rising cost of living crisis and soaring inflation. 

Inflation rose to a new 41-year high of 11.1 per cent in October, up from 10.1 per cent the previous month and far above the 10.7 per cent analysts had expected. 

Soaring food and energy costs were the main drivers of the latest surge, with the Office for National Statistics estimating that the average UK household is now paying 88.9 per cent more for heating and lighting than a year ago.

The Bank of England had predicted inflation would peak slightly below the current level – nearly six times its 2 per cent target – leaving it under huge pressure to ramp up interest rates again. In contrast, US producer price inflation came in below expectations yesterday.

The ONS suggested that without the Government subsidising energy bills this winter, CPI could have been as high as 13.8 per cent and experts warned the UK faces a ‘lethal combination’ of recession and soaring prices. 

As the price of everyday goods continues to rise, an increasing number of Brits are worried about how they will get through the winter.

A recent survey by Opinium found that most people in the country are worried about the price of food, while almost half are concerned they will not be able to afford their rent and mortgage payments over the next few months.  

Demand for wood-burning stoves surges amid cost-of-living crisis

Demand for wood-burning stoves has surged as Brits opt to heat their homes the old-fashioned way amid soaring energy bills.

Retailers are reporting a shortage of stoves, as manufacturers struggle to keep up with demand following supply chain and manufacturing issues during the pandemic and a shortage of materials like cast iron and steel.

Some dealers have reported people buying several log burners at a time as temperatures plummet.

Consumers are snapping up burners as they battle rising bills, with the Russian invasion of Ukraine continuing to push up gas prices.

Retailers are reporting a shortage of stoves, as manufacturers struggle to keep up with demand following Covid supply chain issues and a recent rise in demand

Wood-burning stove sales leapt by 40 per cent between April to June to over 35,000, compared to 25,000 for the same period last year. 

Cornish company Anevay stoves said it has seen a 10 to 20 per cent growth in sales month on month since the beginning of this year.

CEO Dawie Cronje said that while they are ‘happy to be helping customers who have been squeezed by energy bills’, the company is struggling to keep on top of the rising demand.

Cornish company Anevay stoves said it has seen a 10 to 20 per cent growth in sales month on month since the beginning of this year

Mr Cronje said that the company’s lead times have risen from a week to a month due to waiting times for laser-cutting and materials.

‘Steel in general has been an issue price-wise, the price of everything. Welding is power intensive, so that also goes on the energy bills,’ he said.

Choice Stoves, an online dealer in Lancashire, posted on its website that it had suspended online orders due to the ‘UK stove shortage’. 

Backwoodsman, a retailer in the Highlands, has reported a 165 per cent increase in sales in the last year, according to the Telegraph

The seller posted a notice on its website saying they are ‘exceptionally busy due to the effects of the energy crisis,’ with surveys taking up to six weeks.

Lancashire stove fitting company Bowland Stoves also announced that they are fully booked for installations until next year. 

‘If you are still thinking of having a stove installed to beat the Gas and Electric prices, why not book your survey and installation for next year now,’ the company wrote on Twitter.

Choice Stoves, an online dealer in Lancashire, posted on its website that it had suspended online orders due to the ‘UK stove shortage’

Homeowners are opting to heat their homes the old-fashioned way as gas and electricity bills remain high going into the winter months

In September, DIY store Toolstation revealed that its sales of chainsaws had also risen by a third in a matter of weeks.

A spokesperson for the firm said at the time: ‘We suspect the demand is being driven by customers firing up their chainsaws to cut logs and timber for woodburners as many try to soften the impact of energy hikes.’

Figures from the Office for National Statistics showed electricity and gas prices had increased by 54 per cent and 99 per cent respectively in the 12 months to September. 

Backwoodsman posted a notice on its website saying they are ‘exceptionally busy due to the effects of the energy crisis,’ with surveys taking up to six weeks

And after the Chancellor Jeremy Hunt announced the energy price cap will rise from April, it is expected that millions of households face will face a rise of up to £500.

With the end of the Energy Price Guarantee, a typical household will see prices for gas and electricity go up from £2,500 a year now to over £3,000. 

But the rise in wood-burning to combat the cost of bills could result in greater pollution, experts have warned. 

Earlier this year, it was estimated that wood and coal-burning stoves account for 38 per cent of particulate matter air pollution

The Government plans to reduce this 30 per cent in total by 2030, and on January 1 this year brought in rules which state that all stoves sold must comply with ‘Ecodesign’ rules, meaning they have been tested for efficiency.

Mr Cronje said that the new rules mean that wood-burners are far more efficient than before, with some on the market today over 90 per cent efficient and releasing far lower emissions than open fires.

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