What’s going on with Solarplicity’s new customer ban?

Small energy supplier, Solarplicity, were banned from taking on new customers in February this year, mainly due to customer service issues. They were given three months to turn things around. With that deadline now passed, let’s find out what happened with Solarplicity’s new customer ban.

Solarplicity were banned temporarily from taking on new customer back in February this year. Ofgem also banned the firm from increasing direct debit levels on vulnerable customers’ accounts. The regulator threatened, at the time, to revoke Solarplicity’s license if they did not improve their service.

Among the reasons for the ban were unacceptable levels of abandoned calls, as uncovered for the period March 2018 to September 2018. Ofgem also said that there was evidence of unacceptably long call waiting times too. Although some improvement since then has been noted, Ofgem said improvements in other areas were also required before they would be allowed to take on new customers.

Other areas requiring improvement included ensuring switching processes were completed smoothly and within the standard timescales. They also needed to better handle complaints within timely manners, identify and support vulnerable customers and ensure contract renewal notices were presented on time.

Ofgem’s director of consumers and markets said at the time:

"Solarplicity must get its house in order and provide a level of service that its customers expect. If not, Ofgem will take the necessary steps to ensure customers are further protected and will take the relevant action needed to do this, which may result in its licence being revoked."

Overall, the small energy supplier had 1,035 complaints which had been passed to the Energy Ombudsman in 2018.

It seems that Ofgem are now satisfied with the progress made by Solarplicity, as they have decided not to confirm the provisional order made in February this year. They have said that they have found the obligations set out in the provisional order to have been met, or to be in progress and well on the way to achievement.

A spokesperson for Ofgem said:

The supplier has significantly improved its customer service arrangements in relation to complaints handling and the switching process. However, Ofgem still has some concerns in relation to how it treats vulnerable customers and those struggling to pay their bills. We will be actively monitoring Solarplicity’s performance in these areas and the supplier has committed to provide weekly reports to us. If Solarplicity does not improve in these areas, Ofgem reserves the right to take further enforcement action.

“Solarplicity has also agreed to not to take on new customers until 5 August 2019 (other than customers through community energy schemes which it will limit to 200 per week). Solarplicity remains subject to a separate Provisional Order in relation to Feed-in-Tariff payments to generators and continues to work with Ofgem on that issue.”

Solarplicity have reportedly provided a letter of undertaking to Ofgem which states its rollout of a new Vulnerable Customers policy will be completely by June 7th. It has also agreed to reword debt letters, to not take on any new customers until August 5th and too not use debt collection agents against vulnerable customers until the new policy is implemented.

Solarplicity, however, are not entirely off the hook with the regulator as yet. Aside of the issue relating to customer service, the energy supply company was ordered by Ofgem to pay the outstanding money owed to Feed in Tariff (FiT) generators on the 10th May.

The company has had a provisional order issued to it by Ofgem, as there are outstanding moneys owing, despite the supplier receiving FiT levelisation payments which should have allowed it to do so.

However, Solarplicity have hit back saying that the regulator did not engage with them prior to issuing the order. They have said that they are ‘disappointed’ with Ofgem and insist that they are already complying with the requirements of the order. As reported by Utility Week , they said:

“The team at Solarplicity Supply Limited is disappointed that Ofgem has chosen to issue this provisional order in circumstances where we are already complying with the requirements it sets out. Solarplicity has offered voluntary undertakings to Ofgem to assure Ofgem of continued compliance and has proposed additional arrangements above and beyond Solarplicity’s obligations around payment handling.

“Ofgem did not engage with Solarplicity prior to issuing the provisional order to understand the robust processes Solarplicity has in place, or the arrangements we have made in respect of FIT generator payments. Solarplicity made arrangements to ensure FIT generators would continue to receive FIT payments. All payments due to FIT generators are being made and arrangements are in place to make all future payments.”