ScottishPower among three slammed by Ofgem for "severe" weaknesses in helping struggling customers

It comes as the Government stepped in to cap a typical duel fuel household bill at £2,500 per year until 2024, in a bid to tackle skyrocketing energy bills which for many are unaffordable. That remains double the amount being paid last winter.

ScottishPower which has successfully pushed for a taxpayer-backed £100bn loan fund to help energy firms freeze energy bills is one of three who have been highlighted as having the worst record in dealing with vulnerable customers.

Ofgem has already issued a warning to the Glasgow-based energy supplier that is has to meet its obligations to protect vulnerable customers in the cost of living crisis.

It has issued a provisional order to the company to take action to support vulnerable customers and take action to protect customers with debt repayment plans.

A review conducted by Ofgem into ScottishPower found what it called a "number of apparent failings" around the way it sets debt repayment plans and deals with customers struggling with bills.

ScottishPower, which has more than 4.4m customers, has said it was "disappointed" that staff efforts to support customers had resulted in the regulator's action.

Following a full market review, it found that ScottishPower along with two other suppliers, TruEnergy and Utilita had “severe weaknesses” in the way they support struggling customers, while five, E, Good, Green Energy, Outfox and Bulb, were found to have some issues in the support they provide.

Eight suppliers, Ecotricity, EDF, E.ON, Octopus, OVO, Shell, Utility Warehouse and SO/ESB were found to have ‘minor’ issues.

Among its key findings, Ofgem said it uncovered failures in companies being able to identify customers in payment difficulty and a lack of help given to those needing crucial payment plans, while others had a “non-existent” policy relating to struggling customers.

All of those identified have been asked to submit information to Ofgem to set out how they will improve.

British Gas - which trades as Scottish Gas north of the border - was the only supplier found not to have any significant issues.

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Jonathan Brearley, chief executive of Ofgem, said: “We have reviewed suppliers on how they help customers who are having trouble paying their bills, particularly those who are vulnerable, and found some suppliers have fallen short of the standards Ofgem expects.

“We accept that there are many pressures on energy companies in the market this winter, but the needs of vulnerable customers must be part of their top priorities.

“We will now work with companies on where they can improve, and I urge all suppliers to step up to the challenge.”

The regulator found that eight suppliers, Ecotricity, EDF, E.ON, Octopus, OVO, Shell, Utility Warehouse and SO Energy, had minor issues with their support for struggling customers.

Ofgem has written to all suppliers outlining the standards expected of them.

While Ofgem said good practice does exist across the sector, a raft of failures were identified, including a lack of management oversight in the quality of customer engagement and not enough adequate training materials for staff.

It also said in some cases it was not clear how payment plans would be reassessed if customer circumstances change, while there was a lack of information on company structures to understand how issues are identified, raised, and dealt with “from ground level to executive level”.

There is also a need for clearer governance, including escalation routes and levels of delegation and decision-making – meaning customer risks are left exposed, said Ofgem.

Mr Brearley said: “This winter will be challenging, especially for those struggling to pay their energy bills.

“Although the Government’s package of support will provide some welcome relief, it’s critical that, going into this tough winter, energy companies prioritise the needs of vulnerable customers struggling to pay their bills.”

Citizens Advice said by the end of August its frontline staff had supported a record-breaking more than 15,000 people who were unable to top up their prepayment meter.

Citizens Advice chief executive Dame Clare Moriarty said: “Today’s review cements what struggling customers already know: some energy companies are falling drastically short of the mark.

“This is utterly unacceptable given the huge cost-of-living pressures people are facing.

“Suppliers need to up their game and Ofgem needs to hold them to task. With a tough winter ahead we must also see a ban on backdoor disconnection tactics like pushing people in debt on to prepayment meters.”

Citizens Advice is urging Ofgem to introduce a “consumer duty”, similar to the approach being adopted by the Financial Conduct Authority to upgrade consumer protection, to make companies directly responsible for the outcomes their customers experience.

Ofgem’s next “deep dive” market review will look at customer vulnerability and will be published later this year.

A ScottishPower spokesmans said: 'We're disappointed that all of the effort our staff make to help our customers manage affordability challenges has resulted in this conclusion from Ofgem.

'We will now work with Ofgem to implement their recommendations.'

A Utilita spokesperson said: 'We're very disappointed in the conclusions Ofgem has made following its latest Market Compliance Review, especially its decision to issue a Provisional Order rather than to engage with us.

"We remain in discussions with Ofgem to further explore the concerns raised.

"Our staff are deeply committed to helping customers through the cost-of-living crisis and the financial support we offer is extensive: In 2022 alone, we will provide financial assistance more than a million times to customers who need our help."