Utilita to pay £560,000 for blocking customers from switching

Press release

Publication date

Related information

Investigation into Utilita
  • Utilita, over a prolonged period, wrongly blocked 40,000 customers from switching to other suppliers. 
  • Utilita has now changed its practices. 

Utilita will pay £450,000 to StepChange after Ofgem found it had wrongly blocked 40,000 of its customers from switching to other suppliers. It is also working to refund £110,000 to customers who lost out financially after being stopped from switching. Any unclaimed money will go to StepChange.

Between June 2010 and May 2015, Utilita wrongly stopped customers from switching away. Customers were incorrectly blocked by the supplier in a variety of ways, including automatically blocking those on fixed term contracts. 

Utilita also failed to write to customers to explain why their switch had been blocked and what action they could take to resolve any issues. The supplier has now made changes to its processes to ensure there are no unfair barriers to switching. 

Utilita has shown good cooperation throughout the investigation, and the penalty issued reflects this. 

Anthony Pygram, Ofgem’s senior partner with responsibility for enforcement said: “The ability to switch suppliers is important for customers and fundamental to a well-functioning energy market. Utilita’s prolonged failure to allow many customers to switch was unacceptable. Utilita acknowledges its failure and is rightly looking to refund customers left out of pocket.” 

Notes to editors 

  1. Investigation into Utilita and its compliance with its obligations under Standard Licence Condition 14 (SLC 14) of their gas and electricity supply licences.

  2. StepChange.

    StepChange Debt Charity is dedicated to providing free and effective debt advice and practical solutions, to help those struggling with the stress and worry of energy and other problem debts.

    StepChange is the UK’s largest debt charity, with over 1,200 staff and with offices in England, Scotland, Wales and Northern Ireland. Their service is based on a best advice model and draws on more than 20 years of experience.  

    The redress payments will be used to fund various projects that will improve advice and services available for often vulnerable consumers who are experiencing energy-related debt and other debt problems.

About Ofgem

Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.

Follow us on Twitter @ofgempress

For further press information contact: 

Lisa O’Brien: 020 7901 7426 
Dafydd Wyn: 020 3263 9943 
Out of hours media contact number: 07766 511470