Ofgem proposes to remove restrictions on economy energy

Ofgem has issued a notice proposing to remove the operating restrictions it had placed on energy supplier, Economy Energy.

Ofgem-logo-credit-Ofgem 1This follows the significant improvements to its customer service standards. Following a consultation period, if the proposal is confirmed, the removal of restrictions would mean Economy Energy is able to sign up new customers.

Economy Energy resolved the majority of the issues that its customers, most of whom are on prepayment meters, had been experiencing.

These included putting processes in place to reduce the time it takes to get a customer back on supply, extending call centre opening hours and improving the speed of answering customer calls.

Economy Energy supplies around 50,000 customers, who are predominantly on prepayment meters, with electricity and gas across Britain. The decision to take this action and impose operating restrictions is not a common practice by Ofgem.

The decision to issue Economy Energy with an order reflects Ofgem’s concerns about customer welfare given the complaints and customer service failings. The removal of the majority of restrictions reflects Ofgem’s view that they are now in compliance with those regulations.

Two provisions still remain in place, maintaining robust policies to ensure all complaints and the action taken are recorded and the requirement to comply with obligations concerning transfer blocking. We will continue close monitoring of Economy Energy’s performance.

 

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