The UK energy regulator has banned Economy Energy from taking on new customers in the latest of a series of issues that have affected the Coventry based energy provider.
A three month ban on new customers joining Economy was placed on the firm by Ofgem, after the regulator saw a “significant increase” in complaints against the company in recent months.
Last month, Economy was forced to assure customers that it has “no intention” of closing its door following increased speculation that the firm was close to collapsing.
“Ofgem is taking action to protect customers from suffering more harm from the unacceptable level of customer service provided by Economy Energy. We expect the supplier to take immediate action to rectify its failings or face having its ban extended,” said Anthony Pygram, director of conduct and enforcement.
Providing adequate customer service has becoming an increasing issue for “challenger” firms that have risen over recent years, which has forced the regulator to increase the standards of new entrants to the market.
According to Ofgem, if Economy do not improve and expand its customer contact procedures, address billing and payment failures, it could have its license suspended.
The watchdog investigated 399 complaints into the company in November in comparison to 112 last January, with key issues being disputed account balances, failure to issue refunds and concern over billing delays.