REG - OFGEM - WPD pays £14.9m after failing vulnerable customers

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04/05/2022 08:15

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RNS Number : 1399K  OFGEM  04 May 2022

Western Power Distribution pays £14.9 million after failing vulnerable
customers

 

·    WPD has agreed to pay £3.7 million for each of the four licences it
operates, totalling £14.9 million, after instances of failing to provide
information, advice and services to customers on its Priority Services
Register

·    The network company's non-compliance may have meant some of its most
vulnerable customers did not always receive the full support they should have,
particularly during power cuts

·    Ofgem's action will help ensure that network companies meet their
obligations to their Priority Services Register customers

 

Western Power Distribution (WPD), the largest electricity distribution network
operator in Great Britain, has agreed to make a voluntary redress payment of
£14.9 million
(https://www.ofgem.gov.uk/publications/investigation-western-power-distribution-plc-and-its-compliance-obligations-relating-priority-services-register)
after accepting it failed to meet its obligations to provide information to
some of its most vulnerable customers.

 

Network companies are required to provide additional services to households in
vulnerable circumstances who are on their Priority Services Registers (PSR).
There are approximately 6 million customers registered for priority assistance
across Great Britain.

 

These additional services include providing prompt information and advice
during unplanned power cuts to these customers, for whom a loss of electricity
supply may be particularly difficult. This helps these customers take steps to
keep themselves safe and access any additional assistance from network
companies.

 

Examples of additional assistance could include, in appropriate circumstances,
mobile power generators, hot meals and drinks, alternative accommodation and
on-site welfare units.

 

Ofgem launched an investigation into WPD's compliance with its PSR obligations
in 2020. Ofgem found WPD, which has around 1.7 million PSR customers, failed
to promptly notify and update some of those affected on the register by power
cuts about when power would be restored and what assistance was available.

 

WPD also did not promptly provide specific information on how to prepare for
power cuts for the majority of its newly added PSR Customers, with some
waiting up to a year after sign up for the information to be provided.

 

This made it harder for these PSR customers to plan ahead to ensure their
needs were met and access the available assistance. This issue occurred over a
period of five years.

 

Ofgem's investigation also found that WPD failed to ensure all staff visiting
the homes of customers, including those in vulnerable circumstances, had
sufficient background checks, in particular DBS checks.

 

Following the investigation and lengthy engagement with Ofgem, WPD has acted
to address all areas of concern, changing its policies, procedures and
processes.

WPD has agreed to make a voluntary redress payment of £14.9 million to
Ofgem's Redress Fund which will benefit customers. This reflects the
seriousness of the failings and the importance of complying with all
regulatory obligations, especially concerning vulnerable customers.

 

Cathryn Scott, director of enforcement and emerging issues at Ofgem, said:

 

"WPD did not meet all of its obligations to provide additional support to some
of its most vulnerable customers to safeguard their well-being. In our view it
also took too long to put this right. This is totally unacceptable.

 

"Our enforcement against the company sends a strong message that when
companies fail to provide the required services to their Priority Services
Register customers, Ofgem will take action."

 

 

Notes to editors

 

1. Ofgem's Redress Fund is operated on its behalf by the Energy Saving Trust
and allows companies to pay a sum of money to appropriate charities, trusts,
organisations or consumers as a result of breaches of licence conditions. Find
out more here (https://energyredress.org.uk/about-us) .

2. Find out more about the Priority Service Register (PSR), including how to
join, who is eligible, here
(https://www.ofgem.gov.uk/getting-extra-help-priority-services-register) .

3. If you experience a power cut, call 105 for free and you will be put
through to your local network operator who can give you help and advice

4. WPD covers four licensed areas of Great Britain including the South West,
South Wales and the Midlands. The penalty equates to approximately £3.7
million for each of the four licensed entities.

 

Media enquiries

Please email press@ofgem.gov.uk or ring 0203 263 9996.

 

General enquiries (non-media)

If you are an energy customer looking for help and advice, including
complaints about energy firms, please see our Household gas and electricity
guide. Citizens Advice also provide a free, impartial helpline service across
a range of issues on 0808 223 1133.

We also regularly share news and post general advice to help consumers get the
most out of their energy services via our @Ofgem twitter and Facebook pages.
If you have an enquiry or complaint relating to Ofgem's policies or functions,
contact us at consumeraffairs@ofgem.gov.uk or on 020 7901 7295.

For all other non-media related enquiries, please visit our Contact us page.

 

About Ofgem

Ofgem is Britain's independent energy regulator. Our role is to protect
consumers now and in the future by working to deliver a greener, fairer energy
system. We do this by:

Working with Government, industry and consumer groups to deliver a net zero
economy at the lowest cost to consumers.

Stamping out sharp and bad practice, ensuring fair treatment for all
consumers, especially the vulnerable.

Enabling competition and innovation, which drives down prices and results in
new products and services for consumers.

For facts, figures and information about Ofgem's work, see Energy facts and
figures (https://www.ofgem.gov.uk/news-media/energy-market-facts-figures) or
visit the Ofgem Data Portal (https://www.ofgem.gov.uk/data-portal/overview) .

For energy insights and updates straight to your inbox from Ofgem, please
subscribe (https://www.ofgem.gov.uk/subscribe-our-news-and-communications) .

Follow us on Twitter @ofgem (https://twitter.com/ofgem) , LinkedIn
(https://www.linkedin.com/company/ofgem)  and Facebook
(https://www.facebook.com/ofgem) .

 

 

 

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