Energy regulator Ofgem yesterday announced plans to fine Powergen £700,000 after the company unfairly stopped more than 20,000 domestic customers from switching to new gas or electricity suppliers.
The financial penalty follows an investigation by Ofgem covering the period between October 2002 and July 2003.
Sir John Mogg, Ofgem chairman, said in a statement yesterday: “This was a clear breach of the special rules relating to customers in debt. These customers entered in to agreements under which they were making regular payments for their energy supplies. They were then unfairly stopped from switching to a new supplier.
“While Powergen co-operated fully in the investigation, Ofgem still finds this to be unacceptable behaviour which is why we have proposed a financial penalty.”
Three other energy companies, British Gas, npower and ScottishPower, have all faced a £200,000 fine for
