Utilita Energy has agreed to pay out £830,000 after Ofgem suggested the supplier was not taking individual circumstances into consideration when deciding whether or not to provide additional support credits needed for customers topping up prepayment meters.
Ofgem was concerned about Utilita’s processes to assess if prepayment was safe and reasonably practicable for some of its customers. Ofgem was also concerned that Utilita had failed to consider the customer’s individual circumstances (including medical conditions and vulnerabilities) when assessing Additional Support Credit provision. The redress is being paid to customers who had a request for Additional Support Credit declined in a particular period (and the decline may have been incorrect).
The assessment was based on a review of scripts of employees talking to customers, training materials, procedures, policies and recorded calls with Utilita’s 775,000 electricity and 648,000 gas customers.
Of the £830,000, £508,260 will be spent in £20 payments to customers who were potentially affected by the issue. In addition Utilita is paying £321,740 to the Voluntary Redress Fund, which supports vulnerable consumers with their energy, as well as investing in innovation projects and carbon emission reductions.
Utilita was the subject if a provisional order from Ofgem in September. It has lapsed as Ofgem said Utilita had “taken steps which we consider to be appropriate to secure compliance”.
Using the redress route instead of a penalty also meant customers affected will get payment directly and more quickly.