Co-operative Energy is to pay £1.8 million to energy consumers following engagement with Ofgem, as it was found to have let “customers down in its complaints resolution, call handling and billing processes” Ofgem said.
£1.6 million of this money has already been paid with the remainder to be paid shortly to those customers not yet compensated, the UK's energy regulator said in a statement on its website at the end of October.
The money that Co-op is unable to return to customers will go to the charity StepChange to help energy consumers who are in financial difficulties, it added.
Ofgem started engaging with Co-operative Energy “following a steep increase in customer complaints” reported to Ofgem and to Citizen’s Advice. These were caused by customers being unable to log into their accounts online, leaving them unable to submit meter readings or check their bill.
Bills were delayed and direct debit updates stopped.
Moreover, new customers experienced delay transferring to the supplier, and it also “took too long to resolve a significant number of customer complaints,” Ofgem explained.
The issues were the result of the introduction of a new IT system in March 2015.
“Since then, the supplier has worked well with Ofgem to restore customer service levels and provide compensation to those customers directly affected by the issues” the regulator said, adding that “it also voluntarily withdrew from marketing activities to help focus on improving its services to its existing customers.”
“Co-operative Energy has given assurances that adequate processes and systems are now in place to ensure it meets its obligations and that it will provide the level of service that its customers should expect to receive” it added.
“If trust is to be restored in the energy market suppliers must make amends to their customers when things go wrong” commented Martin Crouch, Ofgem senior partner.
“We want all suppliers to constantly ensure customers are treated fairly” he said.