Regulator Ofgem temporarily bans energy company Iresa from taking on new customers

If Iresa's service fails to improve its supplier’s licence could be revoked

Ofgem's provisional order was issued following substantial information, from sources including Citizen’s Advice, the Ombudsman, and its own monitoring function (PA)

Energy company Iresa has been temporarily banned by the industry regulator from taking on new customers or increasing existing customers’ direct debits for up to three months until it resolves a series of service issues.

Ofgem on Tuesday said that the ban would remain in place until Iresa extends call centre hours, bringing down average call waiting times to below five minutes, and responds to customers who request a call back by the end of the next working day.

The company must also commit to responding to customer emails within five working days, clearing a backlog of consumer emails, logging and recording all expressions of customer dissatisfaction and acting to manage and identify all of its vulnerable customers, which includes offering to put them on a priority services register.

Ofgem said that it would monitor Iresa’s progress on the matters. If the company fails to take necessary action within the next three months, its supplier’s licence could be revoked.

“This order sends out a very clear message to suppliers that where they fail their customers on service, Ofgem will step in and take strong action,” said Dermot Nolan, chief executive of Ofgem.

“It’s crucial that all suppliers provide customers with good service, including acting quickly and effectively to sort things out wherever problems occur,” he added.

“Iresa now needs to act quickly and put its house in order otherwise ultimately its licence could be revoked,” he said.

Ofgem said that its provisional order had been issued following substantial information, from sources including Citizen’s Advice, the Ombudsman, and its own monitoring function, suggesting that Iresa risks causing immediate consumer harm due to its inadequate customer service processes.

Iresa was not immediately available for comment.