“Ofgem collects and examines a range of metrics directly from suppliers, in addition to information from consumer groups, NGOs and members of the public, and this has highlighted a number of issues that we find to be relevant and further explored. “For example, there have been concerns that some suppliers may have increased direct debit payments more than necessary or direct customers to invoices that may not be in their best interest. “We have also seen disturbing stories about how some vulnerable customers are treated when they face difficulties.” He continued: “When households face huge increases in their energy bills, it is particularly important that suppliers are held accountable and that bad practices are addressed quickly. “In particular, now more than ever we need suppliers to comply with their licensing requirements on how they work with customers in financial difficulty. “The challenges our customers face today should be a call to action for energy retailers to improve things, both in the way they operate to ensure that it is sustainable and in the way they treat customers. “To ensure that this happens, Ofgem is currently identifying two areas in which we are working to strengthen and strengthen our market surveillance.” The first will see Ofgem outsource a series of “Market Conformity Assessments” to suppliers to ensure they meet their license terms. READ MORE: Kittens rescued after being born in a gutter During the current gas crisis, the energy regulator said one of the deepest causes of many of those failures that shut down the market was linked to the way they handled the money paid to them by customers. However, Mr Brearley said some suppliers “use these balances to support their finances, enabling them to pursue more risky business models with reduced financial resilience and a greater chance of failure”. He warned that if a supplier becomes insolvent, the cost of replacing these balances must be borne by other suppliers and, most importantly, energy customers. Ofgem’s boss said: “Customer credit balances should only be used to settle accounts, not as a source of risk-free capital. “That’s why we’re looking at options to limit credit balances and renewable energy payments in such a way that they are protected in the event of a supplier failure.” Mr Brearley concluded his blog post with a final warning to energy suppliers. He said: “Ofgem is clear about its purpose: to protect the interests of consumers. “In a difficult and volatile market, this means that it is imperative that we control and keep companies at a higher standard. “Where energy retailers do not act responsibly, we will take tough and decisive action by using the full range of regulatory tools at our disposal, including punitive measures if necessary. “We are also working with the government to look at what additional powers may be needed so that we can continue to protect consumers in a rapidly changing market.”
