Yahoo News Ofgem bans energy supplier Solarplicity from taking on new customers
The energy regulator Ofgem. Photo: Photo: Yui Mok/PA Archive/PA Images
Small energy supplier Solarplicity has been banned by Ofgem from taking on new customers and increasing direct debit payments.
The energy regulator has placed a provisional order on the firm that will remain in place for three months unless it significantly improves its poor customer service, it said.
The required improvements include ensuring that customers can switch easily and that they receive renewal notices in a timely manner.
Solarplicity has also been ordered to manage complaints appropriately, provide support for vulnerable customers and put those in debt on a repayment plan.
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Ofgem demanded improvements in Solarplicity’s customer service as it said it had been poor for a number of months.
It said between March 2018 and September 2018 there was “an unacceptably high proportion of calls abandoned and unacceptably long call waiting times.”
According to the regulator, call handling has been improved but it hasn’t seen the required improvements elsewhere.
Earlier this month, Solarplicity was ranked as the worst energy firm according to its own customers, with a satisfaction score of just 44%.
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Solarplicity is now banned from taking on new accounts “to prevent further harm to [its] customers.”
Ofgem will continue to monitor Solarplicity’s work over the next three months, after which it will decide whether to extend the ban.
Mary Starks, executive director of consumers and markets at Ofgem, said: “We have taken action against Solarplicity to protect its customers from experiencing further detriment.
“Solarplicity must get its house in order and provide a level of service that its customers expect. If not, Ofgem will take the necessary steps to ensure customers are further protected and will take the relevant action needed to do this, which may result in its licence being revoked.”
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Ultimately, if the supplier fails to improve Ofgem can take steps to revoke its licence.
During the duration of the provisional order, Solarplicity will be allowed to complete the transfers of customers who have already signed up to be switched through a community energy scheme with Stoke-on-Trent city council.
