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Ofgem supplier licensing proposals “would significantly tighten the rules”, says Citizens Advice

21 Tachwedd 2018

Citizens Advice, in its role as the official consumer champion for energy, has responded to Ofgem’s consultation proposing tighter licensing rules for firms wishing to enter the energy supply market.

Gillian Guy, Chief Executive of Citizens Advice, said:

“Today’s proposals would significantly tighten the rules on firms that want to enter the energy supply market. For too long, firms that are unprepared, financially unsustainable or both have been able get a license and start operating as a supplier.

“Ultimately it’s consumers who suffer when unprepared energy companies are able to enter the market. Many customers suffer with poor customer service, long waits on the phone and inaccurate bills. And everyone pays the price, through their bills, when weak suppliers fail.  The collapse of GB Energy cost consumers £14m in total.

“While the proposed new rules will protect consumers from unfit firms getting a license in the future, there are still poorly performing suppliers operating now. Ofgem must take appropriate steps to remove these firms from the market.”

Notes to editors

  1. 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.
  2. Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.
  3. The Citizens Advice Witness Service provides free, independent support for prosecution and defence witnesses in every criminal court in England and Wales.
  4. Citizens Advice offers Pension Wise services at 500 locations in England and Wales.
  5. 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.
  6. To get advice online or find your local Citizens Advice, visit citizensadvice.org.uk
  7. For consumer advice, call the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 to talk in Welsh.
  8. 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.
  9. Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.