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Further action needed to limit costs of supplier failures, says Citizens Advice

23 Hydref 2019

Citizens Advice, in its role as the official consumer watchdog for energy, has responded to news that Toto Energy has ceased trading.

Gillian Guy, Chief Executive of Citizens Advice, said:

“Toto Energy customers’ electricity and gas supply will continue as normal. Ofgem will appoint a new supplier who will be in touch in due course. Customers should take meter readings ready for when they are contacted by their new supplier.

“Toto Energy is now the 14th domestic energy supplier to collapse in the last two years. We will all end up paying for the failure of energy suppliers as costs get passed down onto our energy bills.

“While measures announced yesterday by Ofgem will go some way to limiting the costs left behind when firms collapse, more action is needed.

“Toto Energy leaves behind £4.6million in unpaid bills for renewable energy development. Government should legislate to require suppliers to make these payments more regularly and stop firms being able to build up such sizeable debts.”

Background

  • Citizens Advice research (Picking up the Pieces June 2019) estimated that recent supplier failures led to an additional £172 million being added to customer bills.
  • The Citizens Advice energy star rating helps people make a more informed choice of supplier. The ratings appear as part of Citizens Advice energy price comparison tool, to enable people to take customer service into account when choosing their energy supplier.

Notes to editors

  1. Citizens Advice includes the national charity; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
  2. Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.
  3. The Citizens Advice Witness Service provides free, independent support for prosecution and defence witnesses in every criminal court in England and Wales.
  4. Citizens Advice offers Pension Wise services at 500 locations in England and Wales.
  5. Citizens Advice’s services are free, independent, confidential and impartial, and available to all regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  6. To get advice online or find your local Citizens Advice, visit citizensadvice.org.uk
  7. For consumer advice, call the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 to talk in Welsh.
  8. We helped 2.6 million people face to face, by phone, email and webchat in 2017-18. For service statistics see our monthly publication Advice trends.
  9. Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.