Search rightsnet
Search options

Where

Benefit

Jurisdiction

Jurisdiction

From

to

23 June, 2020 Open access

Ofgem warns it will not tolerate ‘sharp practice or aggressive debt collection’ as energy firms begin to restart debt management activities

Suppliers must continue to provide support and give careful consideration to customer's circumstances and ability to pay, says Chief Executive

Ofgem says it will not tolerate 'sharp practice or aggressive debt collection' as energy firms begin to restart debt management activities.

In an open letter to energy supply companies, Ofgem Chief Executive Jonathan Brearley acknowledges that suppliers cannot extend unlimited credit to customers and will begin to restart debt management activities that may have been paused during the coronavirus (COVID-19) crisis. However, he warns that - 

'We expect suppliers (and any third parties contracted by them) to ensure that any debt management processes are fair and give careful consideration to the customer’s circumstances and ability to pay – we will not tolerate sharp practice or aggressive debt collection and suppliers could face enforcement action where this is the case. Suppliers need to consider how their approach to debt management should evolve going forward as they continue to deal with customers financially impacted by the COVID-19 crisis.'

For more information see Impact of COVID-19 on retail energy supply companies – regulatory expectations from 1 July 2020 from ofgem.gov.uk