Ofgem closes investigation into Maxen Power Supply Limited

Decision
Publication date
Company
Maxen Power Supply Limited
Industry sector
Supply and Retail Market
Licence type
Electricity Supply Licence
Gas Supplier Licence

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On 29 November 2023, Ofgem opened an investigation into Maxen Power’s compliance with Standard Licence Conditions (“SLCs”) 0A, 4A, 7A, 7.3, 14 and 14A of its Gas and Electricity Supply Licences. These SLCs relate to microbusiness customer service standards, operational capability, deemed contract terms, supply to microbusiness customers and customer transfer procedures. 

In light of evidence gathered during the investigation, on 10 May 2024 the Gas and Electricity Markets Authority (“the Authority”) issued Maxen Power with a Provisional Order (“PO”) as it appeared that Maxen Power was contravening, or likely to contravene, SLCs 0A and 4A. 

This action was taken due to serious concerns over Maxen Power’s Change of Tenancy (“CoT”) policy and the monitoring of Third-Party Intermediaries under contract who provided customer referrals (“TPIs”) to Maxen Power.

The PO required Maxen Power to: 

  • implement changes in its policies and procedures
  • commission an independent audit into whether Maxen Power and their representatives operate in a way compliant with SLCs 0A and 4A and provide the Authority with the audit’s findings; and
  • refrain from all sales, marketing and new customer acquisition activity

Maxen Power engaged with the Authority throughout the period of the PO being in place. The Authority is satisfied that Maxen Power has been taking the steps to ensure their CoT policy and TPI monitoring is compliant with SLCs 0A and 4A. As such, the PO was revoked on 7 August 2024 and is no longer in place.

The investigation concluded that Maxen Power acted in contravention of SLCs 0A, 4A and 7.3. Additionally, Maxen Power contravened SLC 5A for failing to report timeously previous TPI infractions. There was insufficient evidence to indicate breaches of SLCs 7A, 14 and 14A.

Maxen Power has engaged constructively with the case team during the investigation and will continue to engage with Ofgem in this regard following closure of the investigation and as a result:

  • Maxen Power has accepted the findings of the investigation
  • Maxen Power has submitted a payment to Ofgem’s Energy Industry Voluntary Redress Fund in the amount of £1,650,000
  • Maxen Power has agreed to update their Deemed Rates policy and amend contractual terms around disconnection and reconnection charges
  • Ofgem will monitor the implementation of any new policies and procedures introduced by Maxen Power as a result of the investigation and PO

Ofgem’s full case closure statement is available here: Investigation into Maxen Power Supply Ltd and its compliance with its obligations under SLCs 0A, 4A, 7A, 7.3, 14 of the Electricity and Gas Supply Licences

Dominic Alexander, deputy director of enforcement at Ofgem, said: “Our duty is to protect energy consumers, and we expect all suppliers to look out for their customers and treat them fairly."