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Energy Suppliers Failing to Adhere to Ofgem Rules on Refunds

Written by at 17:17

Following last week’s announcement that up to £400 million was owed to UK business energy and domestic energy customers, Love Energy Savings can reveal that many suppliers are delaying repayment of these funds.

Customers are describing it as “almost impossible” to even speak to anyone at some of the leading gas and electricity companies, as they look to get reimbursed for the overpayment of their bills.

In particular, Scottish Power; who provide energy to around 3.5million homes around Britain have been accused by prominent areas of the media of serious shortcomings in their service standards. This has left a great deal of customers frustrated and ultimately out of pocket. Indeed, recent research conducted by The Guardian has revealed that the firm have been:

-          Keeping customers on hold for in excess of one hour

-          Failing to reimburse customers with balances of more that £630, as a result of direct debits

-          Holding on to funds owed to customers, as a result of switching to rival energy companies

This news will surely be of great interest to the regulator Ofgem, who recently ordered this monies to be repaid as swiftly as possible. They had also stated that they would be investigating how fair the policies of the energy suppliers were with particular regard to the returning of funds. Energy suppliers and in particular the ‘Big Six’ have been warned that failure to comply with these rules would suffer penalties from Ofgem.

Queues and Excuses...

Despite previously having a pretty good reputation for good customer service, Scottish Power have come in for some scathing criticism of late with many customers finding it virtually impossible to actually speak to an advisor, whether it be regarding a refund or any other issue.

When individuals have found success in getting through, they are being told that their application for a refund cannot be processed. Excuses being given by Scottish Power include technical issues and the lack of an up to date bill reading.

Scottish Power’s official response to the criticism has been fairly succinct; "Any customer who closes an account by providing an actual final meter reading will receive a final bill and have any refund deposited into their bank account. If we do not have a customer's bank details, we will send a cheque," said a spokesperson this week.

Ofgem Urging Suppliers to Toe the Line...

Ofgem have responded by urging companies to toe the line and restore at least a modicum of consumer trust, especially with many business energy customers and households struggling to make ends meet. It is now thought that the figure of £400 million owed to UK customers could even be an underestimate and as many as three and half million domestic accounts could be affected.

If you think there is even a slim chance that you are paying too much for your home energy of business energy, do not hesitate to get in touch with Love Energy Savings. We can offer free price comparison online and promise to get you on the very best tariff for your needs. Either click the banner just above or give us a call on 01204 372 764.

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