CSA asks Ofgem for clarity on regulation of energy suppliers falling into administration

Chris Leslie, CEO of Credit Services Association (CSA), the UK trade body for the collections and debt purchase sector, has written to Ofgem calling for attention to three specific issues in the light of recent upheaval in the energy market and failure of a number of suppliers.

First, the transfer of customers with neutral or credit balances to new allocated suppliers may be clear, but the position in respect of those with accounts in arrears is more obscure. Chris Leslie has therefore urged Ofgem to provide more clarity about the standards customers should expect in regard to the practices of administrators as they consider collections of sums owed to former suppliers.

Second, Mr. Leslie asked the Ofgem chief executive Jonathan Brearley to acknowledge the crucial importance of data accuracy, integrity and completeness. Transfer processes need to give sufficient information about customer circumstances as there are wider considerations that could affect forbearance, such as entitlement to benefits including the Warm Homes Discount and for those on pre-payment meters. 

Third, the CSA is encouraging Ofgem to consider a proactive communications strategy for those transferred customers who are in difficulty which encourages early engagement and dialogue. Timely communications will be key and the sooner a customer in difficulty engages with their situation the more quickly an appropriate solution can be found. 

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