Challenger supplier Solarplicity has been banned from taking on new customers amid poor customer service ratings.

Regulator Ofgem has today issued a provisional order banning the small supplier from from taking on new households and increasing vulnerable customers’ direct debits, due to its poor switching process and customer service.

The ban will remain in place for three months unless Solarplicity significantly improves. It can do this in several ways, such as by improving customer contact channels, resolving queries in a timely manner and ensuring that the switching process is completed within the required timescale.

It must also ensure that customers receive their contract renewal notice on time.

The firm - which has a Trustpilot score of just two - has also been warned it must adequately review customer accounts (especially those in debt) to ensure those in payment difficulty are managed properly, for example by putting them on repayment plans.

Ofgem said Solarplicity’s customer service scores have been poor for months (
Image:
Getty)

“We are committed to meeting the expectations of every single Solarplicity customer, but Ofgem’s decision, which was made on old historical data, disregards the vast improvements that we have made to our customer service," a Solarplicity spokeswoman told the Mirror.

"Ofgem’s Provisional Order does not cover our new flagship ‘Community Energy Scheme’, which we have developed in partnership with social housing landlords to deliver affordable, clean energy to their tenants. This means we can continue rolling out this offer, which is second to none in fighting fuel poverty for thousands of customers and challenging the dominant UK energy firms.”

Is Solarplicity about to go bust?

Despite the energy supplier claiming it's helping the fight against fuel poverty for thousands, Ofgem said its customer service has been poor for "a number of months". 

Between March 2018 and September 2018, there was an unacceptably high proportion of calls abandoned and unacceptably long call waiting times, it said.

Whilst call handling has improved, Ofgem said it had not seen improvements elsewhere.

If Solarplicity fails to make improvements within three months, the ban could be extended.

Ultimately, if the supplier fails to improve, Ofgem can revoke its licence - as was the case with Economy Energy which was also initially banned from taking on new customers because of issues with existing ones.

Mary Starks, executive director of consumers and markets at Ofgem, said: “We have taken action against Solarplicity to protect its customers from experiencing further detriment.

“Solarplicity must get its house in order and provide a level of service that its customers expect. If not, Ofgem will take the necessary steps to ensure customers are further protected and will take the relevant action needed to do this, which may result in its licence being revoked.”

The Energy Ombudsman told the Mirror it received more than 1,000 complaints about Solarplicity last year - with billing issues the main driver.

“Last year’s total represents a significant increase on 2017 complaint volumes, but that increase should be seen in the context of a rapid growth in Solarplicity customer numbers," a statement said.

“We are working actively and collaboratively with Solarplicity to identify and help implement improvements that can be made to the company’s complaint-handling process and customer service more generally.”

Gillian Guy, of charity Citizens Advice, added: "Solarplicity languishes at the bottom of our energy star rating league table, which assesses suppliers’ standards of customer care.

“This provisional order highlights the continuing problem of struggling companies operating in the energy market. Ofgem must continue to use the powers at its disposal and take action against failing firms.”

How to switch your UK energy supplier

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It's been a season of price hikes with five major suppliers announcing energy rises this week in line with the upcoming price cap increase - but don't stand for it.

If your bill is out of your budget, you've been with the same supplier for as long as you can remember or you're unhappy with the service you're paying for, spend 30 minutes searching for a better, cheaper deal.

Here's how to switch your energy supplier for a cheaper deal.

Alternatively, find out more on how auto-switching services work, here.