Ofgem launches probe into Telecom Plus' Utility Warehouse brand

Ofgem has launched an investigation into the way that Utility Warehouse manages its customers who are in debt, it announced on Friday.

The regulator said it would investigate whether the supplier breached rules related to the way it managed those customers, particularly whether it put in place appropriate repayment options for its indebted customers.

It said that would include whether it did enough to try and contact customers in or at risk of debt, and to establish with them manageable repayment plans based on their ability to pay, as Ofgem’s rules required.

“It also includes whether they are installing prepayment meters appropriately as a means of recovering debt from customers, particularly when they install them under warrant,” Ofgem said in its statement.

“The opening of this investigation does not imply that there’s been any non-compliance by the supplier.”

Utility Warehouse is a brand name of London-listed firm Telecom Plus, and uses controversial multi-level marketing practices to recruit customers for its energy, mobile, and landline/broadband packages.