Investigation into Community Energy Scheme UK Ltd and Community Energy Scheme Stoke Ltd's compliance with consumer protection legislation
- Open
- Decision proposed
- Closed
On 20 August 2021, Ofgem announced the opening of the investigation to consider whether Community Energy Scheme UK Ltd (CES) has contravened consumer protection legislation through its sales and customer service practices.
CES operates the Community Energy Scheme (the “Scheme”) whereby it installs solar photovoltaic (PV) panels on the roofs of social housing in Stoke-on-Trent and sells the electricity from these panels to the tenants.
In December 2022, the scope of the investigation was widened to include Community Energy Scheme Stoke Limited (‘CESS’), another legal entity contracting with consumers.
After a thorough examination of relevant law, and the evidence gathered during the investigation, Ofgem has used the powers that were available to the Authority to tackle current concerns related to the Scheme.
As a result, following Ofgem’s investigation, CES and CESS have offered to implement actions that we consider will address key concerns regarding sales practices conducted up to September 2019. CES and CESS have also agreed to amend existing and new contracts signed by consumers, adding a termination clause which will allow consumers to leave the Scheme at any time (by paying a termination fee calculated on the characteristics of the Solar PV system installed and whose amount reduces for each of the remaining years of the contract). CES and CESS have also amended their bill format to provide clear information to consumers about charges applied and whether charges are estimated.
The offered actions will remedy key concerns identified during the investigation and will ensure contracts signed by consumers reflect legal requirements. Therefore, Ofgem has decided to accept them.
Based on the agreed actions:
Given the circumstances of the case, Ofgem considers that these actions will have the effect of achieving a similar outcome to that the Authority may obtain by exercising its enforcement powers to seek a court order or formal undertakings. Therefore, Ofgem has decided to accept the offered actions. The case will remaining open for the sole purpose of monitoring implementation of the agreed actions and, when these are completed, the case will be formally closed.