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Ofgem threatens to take action as energy companies refuse to take on new customers amid price crisis
Watchdog Ofgem threatens to take action as energy companies refuse to take on new customers during price crisis
- It turned out that the largest energy suppliers reused to quote customers online
- Ofgem threatened to intervene because it expected companies to take on new customers
- British Gas, EDF, E.ON, Ovo Energy and Scottish Power have blocked online quotes
- Lightning-fast energy prices and the volatile market were blamed for the changes
Watchdog Ofgem has threatened to take action after it emerged that energy companies are refusing to take on new customers during the price crisis.
It was revealed that British Gas, EDF, E.ON, Ovo Energy and Scottish Power are preventing people from switching energy suppliers by refusing to offer new deals online.
The inability to get quotes can cause problems for those relocating, who can’t get a deal on their new home.
While the energy watchdog has no specific requirement for companies to allow customers to sign up online, it said that if new customers were unable to get new deals, it would “contact suppliers to ensure compliance.”
It was revealed that British Gas, EDF, E.ON, Ovo Energy and Scottish Power are stopping people from switching energy suppliers by refusing to offer new deals online
Energy companies blame skyrocketing energy prices and the volatile market for the reasoning behind not bidding, as it can risk big losses for the suppliers if prices don’t go well. The Telegraph reported.
Ovo Energy and British Gas advised potential new customers to stick with their current supplier, advice which was taken up by financial experts.
However, Ovo Energy was also the only company to inform customers that they can call to learn more about deals after online applications are shut down.
An Ofgem spokesperson said the watchdog expects licensed energy suppliers to take on new customers and ensure their connections are adequately metered.
Ovo Energy and British Gas advised potential new customers to stay with their current supplier, advice adopted by financial experts
He said: ‘Where this is not done, we will engage with suppliers to ensure compliance.’
An E.ON spokesperson advised customers to stick with their current suppliers, given rising energy costs.
He added that customers could sign up to receive notifications about when the company could offer new rates or call to discuss.
An EDF spokesperson also said potential customers can call to discuss rates, but the website has no confirmation of this.
British Gas, Ovo Energy and Scottish Power did not respond to requests for comment.