Watchdog Ofgem threatens to take action as energy firms refuse to take on new customers amid price crisis
- It emerged the biggest energy suppliers were reusing to quote customers online
- Ofgem threatened to intervene as it expected companies to take new customers
- British Gas, EDF, E.ON, Ovo Energy and Scottish Power blocked online quotes
- Rocketing energy prices and the volatile market were blamed for the changes
Watchdog Ofgem has threatened to take action as it emerged energy firms are refusing to take on new customers amid the price crisis.
It was revealed that British Gas, EDF, E.ON, Ovo Energy and Scottish Power are deterring people from switching energy suppliers by refusing to quote new deals online.
The inability to get quotes can cause problems for those moving house, who can’t get a deal for their new home.
Ofgem said it expected suppliers to accept new customers and for those potential customers to be able to compare tariffs easily.
Despite the energy watchdog not having a specific requirement for companies to allow customers to sign up on online, it said where new customers were unable to get new deals, it would ‘engage with suppliers to ensure compliance.’
It was revealed that British Gas, EDF, E.ON, Ovo Energy and Scottish Power are deterring people from switching energy suppliers by refusing to quote new deals online
Power companies blame rocketing energy prices and the volatile market for the reasoning behind not issuing quotes, as it can risk large losses for the suppliers if prices don’t go their way, The Telegraph reported.
Ovo Energy and British Gas advised potential new customers to remain with their current supplier, advice which has been echoed by financial experts.
However, Ovo Energy was also the only company to inform customers that they can call to find out about deals after online applications were halted.
A spokesman for Ofgem said the watchdog expects licensed energy suppliers to take on new customers that come to them and to make sure their connections are metered adequately.
He said: ‘Where this is not being done, we will engage with suppliers to ensure compliance.’
An E.ON spokesman recommended customers stay with their current suppliers given the rising energy costs.
He added that customers could sign up to receive alerts of when the company was in a position to offer new tariffs or could call to discuss.
A spokesman for EDF also said potential customers could ring to discuss tariffs but its website did not have confirmation of this.
British Gas, Ovo Energy and Scottish Power did not respond to comment requests.
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