Big five UK energy companies turning away new customers
Householders in Britain who want to sign up to a new energy company are apparently being obstructed by the largest suppliers, in potential breach of their licence obligations.
The “big five” energy companies are informing those who apply online for a tariff that they should remain with their current supplier because of the volatile energy market. According to the industry regulator, Ofgem, suppliers are obliged to accept new customers as a condition of their licence.
The issue emerged after some consumers reported being unable to find another supplier who would take them on. Some said that when they applied for a quote, a message said they should remain with their current supplier and that the company was not providing quotes.
Michael Donagy, a student and retail assistant, said he had been left in limbo after moving into a new home, unable to open an account in his name with the current supplier and unable to switch to a new provider because none would respond to online requests.
“When I filled out the web form for the current supplier, a message told me to stick to my current provider!” he said. “I’ve tried to call and it was a task just finding a phone number on the website, and I’ve spent a total of three hours on hold without getting through.”
In July, Ofgem launched a long-planned “switching programme” to make it easier and faster for customers to switch supplier. The aim is to strengthen competition in the energy sector by encouraging customers to shop around.
However, soaring energy prices have ended competitive fixed-price contracts, with the mandated Ofgem price cap usually the best tariff available. That annual figure for the typical household had been due to soar to £3,549 from 1 October, before Liz Truss announced
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