Energy regulator Ofgem has launched an investigation into the way energy supplier Utility Warehouse manages its customers who are in debt.
Ofgem will investigate whether Utility Warehouse has breached the rules for managing such customers, and particularly, whether it has put in place appropriate repayment options for them.
The regulator is concerned about whether Utility Warehouse does enough to try to contact customers in or at risk of debt, and to establish manageable repayment plans based on their ability to pay. It will also investigate whether the supplier is installing pre-payment meters appropriately as a means of recovering debt from customers.
However, the regulator stresses that the opening of this investigation does not imply that there’s been any non-compliance by Utility Warehouse.
A spokesperson for Utility Warehouse comments: "Utility Warehouse is surprised and disappointed that Ofgem has decided to launch a formal investigation into some of our processes. An independent audit of these processes late in 2017 gave an overall positive report with a number of best practice recommendations now having been fully implemented.
"We will, of course, work alongside Ofgem to ensure that this investigation is concluded."