Ofgem issues a warning to energy suppliers over the use of threatening language towards customers

According to the regulators latest Consumer Protection report, a small number of energy suppliers are acting in a way it considers aggressive towards customers that owe them money.

The report which covers areas of good and poor practice demonstrated by energy suppliers over the past year has shown that some suppliers are resorting to less than empathetic language with some threatening customers with debt collectors and court action.

Some suppliers were also shown to have issued administration charges as well as threatening struggling customers with negative impacts on their credit ratings.

In its report, Ofgem stated: “In order to protect consumers, we have put in place rules on energy suppliers to treat their customers fairly. This is particularly important in terms of how suppliers communicate and engage with customers experiencing financial difficulty. Here, there are three core outcomes that we want suppliers to meet:

• Customers know that they can contact their energy supplier easily and be treated fairly when they do.
• Customers are aware that energy suppliers will directly provide support where appropriate, or signpost to a relevant organisation who can; and
• Customers understand that energy suppliers must take into account an individual’s ability to pay.

Also read: How to lose customers: Some Energy Suppliers shamed for threatening customers with bailiffs during Covid-19 Pandemic

Increase in debt repayments

One positive from the report is that overall, the number of customers repaying their energy debts increased slightly in 2021 compared to the previous year. Both gas and electricity repayments rose despite the negative impacts of the Covid-19 lockdowns and economic challenges.

However, despite this increase in debt repayments it will not be enough to reverse the massive losses suppliers are suffering currently as a result of soaring wholesale energy prices.

Also read: Energy Suppliers must embrace new technology and improve communications to serve the next generation of consumers says new report

Communication is key

Communication is perhaps the most important thing energy suppliers need to consider when interacting with their customers.

Poor communications are often punished by Ofgem, so it pays to ensure you get it right. Software such as

Dyball’s CSM system streamlines the communications process ensuring that customers get the correct correspondence at the right time.

The main three communication outputs Ofgem suggest are:

• Customers must know that they can contact their energy supplier easily and be treated fairly when they do.
• Customers must be aware that their energy supplier will directly support them where appropriate or have relevant organisations who can assist clearly highlighted.
• It must be made clear that the energy supplier will take into account an individual’s ability to pay their energy bills.

Also read: Energy Supplier CRM & Energy Billing System