An investigation has been launched by the energy regulator, amid concerns over Economy Energy’s sales practices.
Ofgem will look at whether the company, which supplies gas and electricity predominately to vulnerable pre-payment customers (those who pay for their energy in advance using a meter), has breached rules that require suppliers to communicate transparently and accurately to customers in marketing and telesales activities.
Charity Citizens Advice service raised concerns with Ofgem in July relating to a high level of complaints against Economy Energy, particularly surrounding its marketing and sales practices.
Economy Energy ranked 13th of 21 energy firms in Citizen’s latest customer complaints table, receiving 178.3 complaints per 100,000 customers between April and June 2016. In comparison, SSE at the top of the table received 22.5 complaints per 100,000 customers, while Extra Energy in last place received 1,791.2.
However, Ofgem stresses that the opening of the investigation does not imply that Economy Energy has done anything wrong.
A spokesperson for Economy Energy says: “We are cooperating fully with Ofgem and customer satisfaction remains our utmost priority at all times.”
It’s the latest in a number of investigations that the regulator has opened in the past few months. It’s currently looking into Extra Energy’s customer service and billing processes and SSE’s switching process.