Ofgem closes compliance engagement with iSupply Energy in relation to transfer blocking
Decision
- Publication date
- Company
- iSupply Energy Limited
- Industry sector
- Supply and Retail Market
- Licence type
- Electricity Supply Licence
- Gas Supplier Licence
Between 2012 and early 2020, a system error objected to any customer transfer if the customer had an outstanding debit balance of £40 or over owed to iSupply. Under standard licence condition (SLC) 14 of the supply licence, suppliers can only prevent customers from switching for money owed if the amount has been billed at least 28 days before the switching request.
As a result, 22,863 customers were blocked and impacted with an invalid objection.
Redress comprises:
- Direct customer refunds totalling £406,224.81 (£21.65 average per customer).
- Customer goodwill payments totalling £114,315
This is a total redress of £520,539.81 and any residual monies where customers cannot be contacted or do not cash cheques will go into the Voluntary Redress Fund.
Ofgem continues to engage closely with iSupply while it leaves the market, including ensuring that this redress package is progressed in full. iSupply has already issued cheques compensating those customers impacted by this issue.
Key messages to suppliers
- It is important that suppliers do not prevent customers from switching for money owed if the amount has not been billed at least 28 days before the switching request, and that they clearly understand and correctly apply the SLCs.
- Ofgem expects suppliers to have robust governance and risk management processes in place with the ability to anticipate, escalate and mitigate the risk of consumer harm.
- Ofgem encourages and expects suppliers to self-report to the regulator any possible non-compliance or customer detriment a matter of good practice.
iSupply Energy no longer take on new customers and will be exiting the energy supply market in 2020.