Citizens Advice has called for new entrants to the energy market to face greater scrutiny.
The call comes as Ofgem announced that it has opened an investigation into small supplier Iresa. It is considering whether the company has broken rules on billing, complaints handling, customer transfer blocking and customer service.
Gillian Guy, chief executive of Citizens Advice, said: “According to our complaints handling data, Iresa is one of the poorest performing energy companies.
“New entrants to the market should face greater scrutiny. It’s currently too easy for new firms to set themselves up as energy suppliers, often before they are able to provide good quality customer service. Ultimately it is energy customers who pay the price when firms are not up to scratch.”