Utility Week

Customers UTILITY WEEK | 30TH NOVEMBER - 6TH DECEMBER 2018 | 25 Concerns have been raised aer Outfox the Market changed the way it bills direct debit customers. The supplier said customers will now be charged more in winter than in summer. A typical customer will pay about 40 per cent more between October and March than they currently do, and about 40 per cent less from April to September. This means prices will more than double ENERGY Concern as Outfox the Market hikes direct debit charges for winter between summer and winter. In a statement on Facebook, Outfox the Market said: "We have had some feedback from cus- tomers concerned that the new 'winter upli' will be their new payment for the next 12 months. This is not correct. To be abun- dantly clear, these payments will be limited to December, January, February and March. "Your payments will then be reduced to the much lower summer schedule for April, May, June, July, August and Septem- ber. The winter upli will then begin again in October 2019." The supplier said it passes on the "true reflection of the cost of energy" to its customers, sug- gesting rising wholesale costs have been a factor in the change. An industry source told Utility Week the company is "probably This week Scottish Power takes on Extra customers Big six supplier named SoLR for Extra Energy's 108,000 domestic and 21,000 business customers Scottish Power has been chosen as the supplier of last resort (SoLR) to take on the 108,000 domestic customers and 21,000 business customers of Extra Energy, which ceased trading on 21 November. The appointment follows a competitive process run by Ofgem to get the "best deal possible" for the customers. Scottish Power said it will offer Extra Energy's customers a competitive tariff and will honour all out- standing credit balances, including money owed to both existing and former customers of Extra Energy. The big six supplier, which already provides energy to more than five million households and businesses, began taking responsibility for Extra's customers on 25 November. Ofgem interim director for future retail markets, Philippa Pickford, said: "We are pleased to secure a deal with Scottish Power, where Extra Energy's domestic and business customers will be offered a competitive tariff for their energy. Their credit balances will be honoured, and their energy supply will continue as normal." Scottish Power chief executive Keith Anderson said the new customers have "no need to worry" and should "sit tight". "They are joining a safe and stable integrated energy company that will soon uniquely generate power from 100 per cent green sources and invests every day to make renewable energy cheaper." Extra Energy had struggled with customer service, coming bottom in Citizens Advice's customer service league table for the second-time running in 2017. It is not the only supplier forced to shut up shop. On 23 November, Ofgem announced that Spark Energy had ceased trading because of "tough conditions". LV WATER Ofwat calls for faster compensation Ofwat has recommended a complete overhaul of compensa- tion arrangements for custom- ers, aer freezing conditions last winter le many households without water. The regulator said it would like to see compensation pay- ments for household customers increased to £30 for every 12-hour period they are le off supply. At present, the Guaranteed Standards Scheme (GSS) means households are entitled to £20 aer 12 hours and a further £10 for every additional 24 hours they do not have water. Ofwat is also looking to make compensation payments automatic and cut out the need for customers to go through the process of applying once their water has been restored. In addition, Ofwat has writ- ten to Thames Water, Severn Trent, Southern Water and South East Water asking them to address the issues identified in Ofwat's recent review into how suppliers handled the "Beast from the East" last winter and the subsequent freeze-thaw incident, which le 200,000 customers without water for at least four hours. In a report looking at how companies dealt with the storm, Ofwat expressed disappointment at the response of some com- panies, especially as the severe weather was forecast in advance. "Being le without a crucial public service like running water causes disruption and hardship and compensation arrangements should reflect the impact on people's lives," said Ofwat chief executive Rachel Fletcher. "The reforms we are propos- ing will aim to ensure that compensation for future supply interruptions is fair, fast and free from hassle." WATER Welsh Water aims to support vulnerable Welsh Water has launched a new strategy to significantly increase the amount of support it gives its most vulnerable customers over the next decade. The Supporting Our Customers strategy promises to almost quadruple the number of customers on its Priority Services Register by 2025 and work with other organisations to help find customers who may need extra help. In addition, it is targeting a 50 per cent increase in customers who receive financial help from the company to pay for their water bills – to 150,000, from just over 100,000 now. Welsh Water's managing director of household customer services, Samantha James, said: "We know that some of the areas we serve have some of the lowest levels of household income in the UK – and that water bills can add to the challenges some households face in making ends meet." Anderson: customers have 'no need to worry' struggling with cash flow". In response, Outfox said it was financially sound but changes were needed for it to continue to provide the prices it does. It also issued an apology aer some cus- tomers were sent an email with incorrect information regarding their direct debit payments, which were "over-inflated" as a result of a 25 per cent rise in their estimated annual consumption.

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