Ofgem opens an investigation and serves a provisional order to Farringdon Energy Limited
Investigation
- Open
- Decision proposed
- Closed
The Gas and Electricity Markets Authority (“the Authority”) is launching an investigation into whether Farringdon Energy Ltd. (“Farringdon”), are in compliance with rules around treating microbusinesses fairly and their operational capability.
Farringdon Energy Ltd. is a UK based non-domestic energy supplier with their registered office in Essex, England.
The investigation will examine whether Farringdon Energy Ltd. is in compliance with the requirements of Standard Licence Conditions (SLC) 0A and 4A.
SLC 0A relates to treating microbusinesses fairly, which requires suppliers to act in a fair, honest, transparent, appropriate and professional manner.
SLC 4A requires suppliers to maintain operational capability, particularly to meeting regulatory requirements and mitigate risk to customers.
On 9 May 2024, the Authority issued a Provisional Order to Farringdon in accordance with section 25(2) of the Electricity Act 1989.
It appears to the Authority that Farringdon is contravening, or likely to contravene, SLC 4A.1(a) and 4A.1(b) by:
(1) failing to maintain robust internal capability, systems and processes to enable it to efficiently and effectively serve each of its customers, and
(2) efficiently and effectively identifying likely risks of consumer harm and to mitigate any such risks.
The Provisional Order sets out a number of actions for Farringdon to complete by specified deadlines. These include the requirement not to act in contravention of SLC 4A.1, and to refrain from all sales, marketing and customer acquisition activity, including the acquisition of any new non-domestic customers, until the Authority is satisfied the conditions in the Provisional Order have been met.
Full details are contained in the Provisional Order.
The opening of an investigation does not imply that Ofgem has made any findings about non-compliance.