Notice of decision to impose a financial penalty on Economy Energy following our investigation into its compliance with its obligations under the gas and electricity supply licences (Standard Licence Conditions 23, 24 and 25)

Decision

The Authority has confirmed its decision to impose a financial penalty on Economy Energy following an investigation into its compliance with a number of relevant conditions set out in SLCs 23, 24 and 25. 

Economy Energy has admitted that it breached SLCs 23.1, 23.3, 23.4, 25.1, 25.2, 25.5, 25.6, 25.7, 25.8 and 25.16. The provisions of SLC 23 and 25 govern the notification of domestic supply contract terms and the marketing of gas and electricity to domestic customers. The investigation also looked at whether Economy Energy incorrectly charged exit fees (SLC 24.3) and whether it provided written estimates to customers (SLC 25.9). There was no finding of breach in relation to these SLCs.

The Authority has confirmed its decision to impose a financial penalty of £1. This is in addition to £250,000 (less £1) that Economy Energy has paid to Citizens Advice. This redress payment will be used towards the Energy Best Deal Extra Prepayment Meter project, the aim of which is to provide advice and information to vulnerable consumers with prepayment meters.

Economy Energy will also take further steps to trace and refund customers who lost out financially as a result of either being mis-sold contracts or not being advised of price increases. Economy Energy has also paid unclaimed monies to the National Children’s Bureau.