Energy UK responds to Citizens Advice's report on failed energy suppliers
Responding to Citizens Advice's report on failed energy suppliers, Energy UK's Director of Policy, Audrey Gallacher said:
“It’s essential to have this safety net for customers but at the moment it’s being triggered far more than was ever intended. This means customers potentially footing the bill for as much as £172 million as result of suppliers exiting the market because of unsustainable business models, often after performing badly with their customer service.
“It’s a particular concern that, as Citizens Advice points out, administrators taking charge of failed companies are not required to treat indebted customers with the same consideration as suppliers. So we fully support their call for existing consumer protection requirements to be extended to administrators.
“The increase in competition and the number of suppliers in recent years have been great for customers in providing choice and driving down prices. But we welcome Ofgem bringing in tougher checks for suppliers entering and operating in the market to ensure they have sustainable business models and are adequately financed to serve their customers. Ofgem now needs to ensure that the ongoing operation of companies is monitored to minimise the risk of additional costs being loaded on to consumers."