The two companies have agreed to pay a total of £450,000 to local charities. Each company has also agreed to carry out comprehensive and independent compliance audits and make significant changes to internal procedures. Both these additional commitments are designed to facilitate future compliance with regulatory obligations.
Chief Executive of the Utility Regulator, Jenny Pyper, said:
"Our job is to protect the interests of energy consumers and we expect regulated companies to be able to demonstrate compliance with their regulatory obligations. Our investigations involved evidence of significant regulatory failures. We were surprised and disappointed to see such a range of systemic compliance issues. The investigations examined numerous licence obligations, such as the provision of information to customers and compliance with industry codes of practice, including the marketing code of practice.
"We have now closed each investigation, however, in doing so, our clear view is that it is imperative that both companies learn lessons so that customers receive the service they are entitled to. I am pleased that the companies have agreed to make payments totalling £450,000 to local charities, in addition to agreed changes to their corporate processes, and undertaking a comprehensive programme of independent compliance audits conducted at their own expense.
"We do acknowledge the full co-operation of both companies during the investigations. The steps taken by them, by way of redress to affected customers, self-reporting of the matters under investigation and improvements to internal processes, are welcome. While the investigations are now closed, we shall nevertheless continue to monitor the situation to ensure that each company lives up to the commitments it has made".
Further details of the closing of the formal investigations can be found here: