Policy & Research
Paying for energy
Debt and disconnection
Recent energy price rises, together with the continued wider economic downturn, mean that many customers are struggling to pay for the electricity and gas they use. Consumer Focus works with the regulator Ofgem to monitor the way that the energy industry treats customers in debt.
Consumer Focus (and its predecessor energywatch) has a long history of involvement in the issues relating to suppliers’ debt and disconnection policies. We have worked closely with the regulator, Ofgem on this issue, from a document on good practice in 2002 to the latest joint review of suppliers’ policies in 2010.
In addition, we continually monitor and report on suppliers’ debt and disconnection performance, taking action where we have evidence that a supplier’s performance and procedures are not as robust as they should be.
In 2009 we had alarming evidence from our Extra Help Unit of vulnerable consumers being disconnected – we brought this to Ofgem’s attention and carried out a fast track review of suppliers vulnerable disconnection policies. In 2010 we again worked with Ofgem to carry out a review of suppliers’ policies toward consumers in debt, focusing on how they take their customers circumstances and ability pay into account when agreeing debt repayment rates. We also carried out a review of how suppliers communicate with customers about Fuel Direct.
When we carry out a review of supplier policies, Consumer Focus analyses commercially confidential information and provides each of the main six suppliers with a confidential report that is designed to:
- give an in depth critique of supplier policies and processes
- make specific recommendations for improvement
- set out best practice across industry
- rank suppliers under each of the areas examined
We have produced a number of leaflets and factsheets for consumers in debt:
