EDF Energy fined £2 million for poor customer service

Energy regulator Ofgem is to fine EDF Energy Networks £2 million for failing to meet statutory timescales for providing offers to customers requesting a connection to its electricity networks.
The enforcement action is the latest demonstration of Ofgem's readiness to use its powers to penalise companies who act against customer interests.

EDF Energy Networks is a regulated monopoly. In return for the charges customers pay it is expected to offer good customer service; including provision of connection offers to customers, such as homeowners and housing or business premises developers as soon as is reasonably practical.

There is a back-stop licence requirement of three months for an electricity distributor to make a connection offer. Ofgem's investigation found that since 2006, and despite a warning from Ofgem at that time, EDF Energy Networks failed to meet this deadline in over 100 cases and did not have adequate systems in place to determine whether it was complying with the three- month deadline.

Sarah Harrison, Ofgem's Managing Director, Corporate Affairs, said: "Customers should not have to accept poor service in any part of the energy market. All energy companies should be in no doubt that if they are failing to offer good customer service Ofgem will take tough regulatory action. We recognise that EDF Energy has now taken steps to improve its connections service, but they should have taken this action some time ago. EDF Energy has already paid around £450,000 in compensation to affected customers, and this is reflected in the level of Ofgem's penalty."

Customers must continue to rely on EDF Energy for connections related work as it is a monopoly provider of certain "non-contestable" connection services in London, the East of England and the South East, and faces limited competition in the connections market more generally.