NEA warmly welcomes Ofgem’s consultation on self-disconnection and self-rationing. The proposals made in this consultation will undoubtedly have a material affect on the number of customers that self-disconnect and self-ration. They are broadly in line with a number of suggestions that NEA made within our response to the preceding “Prepayment Self-Disconnection and Self-Rationing: A Call for Evidence”.
A key recommendation that NEA made in the call for evidence was for Ofgem to “address an unacceptably large variance in efforts to reduce the risk of self-disconnection and self-rationing across different energy suppliers depending on their size and capacity”, and for Ofgem to “stress its willingness to regulate all licensees if voluntary attempts to encourage greater participation of industry-led protocols fail to reduce this variance”. The proposals within the consultation to create new licence conditions for all suppliers reflecting the need to offer Emergency Credit, Discretionary Credit and to adhere to the ability to pay principles are all welcome and should lead to a more consistent provision of service across the industry. It is particularly important that once these new licence conditions have been created, Ofgem actively monitors adherence to them and takes action where there are compliance issues.
Download the full consultation here