NAO report underlines why Ofgem needs to beef up rules and make sure companies stick to them, says Citizens Advice
Responding to the NAO report on the energy supplier market, Dame Clare Moriarty, Chief Executive of Citizens Advice, said:
“Today’s findings underline serious failures by Ofgem which Citizens Advice has repeatedly sounded the alarm on.
“It’s totally unacceptable that suppliers entered the market without proper checks and that customers were landed with a multi-billion pound bill as a result.
“Ofgem has started to beef up its rules; it now needs to make sure companies stick to them.
“The government must also play its part in protecting customers when their supplier collapses.
That means overhauling the system to reduce the costs from future failures and end harsh debt collection practices from administrators.”
In its 2021 Market Meltdown report, Citizens Advice showed supplier failures since Aug 2021 would cost consumers around £94 per customer from 2022. It also showed customers of failed suppliers pay for energy market turbulence with billing delays, confusion and lost debt protections.
Notes to editors
- Citizens Advice includes the national charity; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
- Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.
- The Citizens Advice Witness Service provides free, independent support for prosecution and defence witnesses in every criminal court in England and Wales.
- Citizens Advice offers Pension Wise services at 500 locations in England and Wales.
- Citizens Advice’s services are free, independent, confidential and impartial, and available to all regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To get advice online or find your local Citizens Advice, visit citizensadvice.org.uk
- For consumer advice, call the Citizens Advice consumer service on 0808 223 1133 or 0808 223 1144 to talk in Welsh.
- We helped 2.6 million people face to face, by phone, email and webchat in 2017-18. For service statistics see our monthly publication Advice trends.
- Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.