Coventry energy firm banned from taking on new customers

[dutchman]

The ban was issued by gas and electricity regulator Ofgem



A Coventry energy firm is facing the possibility of having its licence revoked amid concerns over its customer service.

Economy Energy has been banned from taking on new customers by energy regulator Ofgem.

The ban, issued as part of a provisional order on Friday, January 4, will remain in place for up to three months.

The regulator said that the small energy supplier has also been ordered to stop requesting one-off payments and increasing direct debits.

During that time the company is expected to “take steps to improve and expand” its customer contact procedures via email and webchat.

It is also expected to address its billing and payment failures and issue customer refunds in a timely manner.

If Economy Energy fails to make improvements within three months, Ofgem can extend the ban or, if the supplier fails to improve, it can take steps to revoke its licence altogether.

Economy Energy is based in Friars House, Manor House Drive, close to Coventry railway station and employs more than 200 people.

The business has had a presence in Coventry for a number of years.

In December 2016 it announced it was investing £4m in a customer contact centre in Coventry which would see the creation of more than 200 jobs.

But Ofgem said it had now taken action due to the decline in the standards of Economy Energy’s customer service, complaints handling processes and billing and payment procedures.

The supplier, which has around 244,000 customers, is also thought to be in financial distress and is working with KPMG to assess its options.

One of those critical of Economy Energy was Coventry councillor Ed Ruane , who is a customer of the company.

Cllr Ruane took to twitter to complain about a refund he was yet to receive.

[dutchman]

More than 200 jobs set to go as Coventry energy firm collapses

More than 200 jobs look set to go in Coventry with the collapse of energy supplier Economy Energy.

The news the company has ceased trading comes just a week after the company was banned from taking on new customers.

It also means more than 235,000 domestic customers have been left in limbo, though under regulator Ofgem’s safety net, their energy supplies will continue and prepayment meters can be topped up as normal.

The outstanding credit balances of domestic customers will also be protected.

Economy Energy was based in Friars House, Manor House Drive, close to Coventry railway station and employed more than 200 people.

The business has had a presence in Coventry for a number of years.

In December 2016 it announced it was investing £4m in a customer contact centre in Coventry which would see the creation of more than 200 jobs.

Ofgem will now choose a new supplier to take on Economy Energy’s customers as quickly as possible.

This supplier will contact these customers shortly after being appointed.

On its website Economy Energy posted the following statement: “Economy Energy has ceased to trade.

“Ofgem, the energy regulator, is appointing a new supplier for its customers.

“Customers need not worry, their supplies are secure and credit balances are protected.

“Ofgem’s advice is not to switch, but to sit tight and wait until the new supplier has been appointed.

“This will help make sure that the process of handing customers over to a new supplier, and honouring credit balances, is as hassle free for customers as possible.”

The statement continued by directing customers to the Ofgem website or the regulator’s Facebook and Twitter feeds for advice and information.

It also urged customers requiring additional support to contact Citizens Advice on 03454 04 05 06.

Meanwhile Ofgem advised Economy Energy customers not to switch to another energy supplier but to take a meter reading ready for when their new supplier contacts them.

It said this would make the process of transferring customers over to the chosen supplier, and paying back their outstanding credit balances, as smooth as possible.

[dutchman]

50 jobs axed as Coventry company enters administration

Almost 50 workers have been made redundant after a Coventry energy company went into administration.

Joint administrators were appointed to Economy Energy on January 14 and they immediately announced 49 of its 193 staff in Coventry were being made redundant.

It is not yet clear what will happen to the remaining staff but the administrators said the process would be “complex”.

They added that the company had faced “a wide variety of challenges”.

Economy Energy (EE) was based in Friars House, Manor House Drive, close to Coventry railway station, though it employed people at two sites in the city.

Eddie Williams, Jon Roden and Stuart Preston of Grant Thornton have been appointed joint administrators.

The administrators said that due to its financial difficulties, EE recently engaged with the industry regulator (Ofgem) to undertake a Supplier of Last Resort (“SoLR”) process.

The process completed on January 12, with a system put in place to transfer all customer accounts and ongoing supply obligations to OVO Energy.

Eddie Williams, advisory partner at Grant Thornton, said: “In common with a number of independent gas and electricity suppliers, EE has struggled over the last few months with a wide variety of challenges including a difficult wholesale market and a requirement to make significant renewable obligation payments which were due.

“As a consequence, future cash flows have meant that the business was not in a position to continue to operate.”

Mr Williams added: “Our priority is to continue to work with Ofgem and OVO Energy to ensure that any impact on customers is minimised and to undertake an orderly collection of outstanding balances due and realise any other assets of the company.

“The administration process is expected to be complex and is clearly at an early stage but unfortunately due to the current position of EE, 49 employees have been made redundant.

“The remaining employees continue to be retained to support EE and that process.”