Ofgem orders supplier to remove manager role from one of its executives

The regulator said the individual is not “fit and proper” to occupy such a role

Big Zero Report 2022

Ofgem has today published a Notice of Proposal to make a Final Order against energy supplier UK Energy Incubator Hub (UKEIH).

The proposed Final Order would require UKEIH to remove a senior individual from a position of “significant management responsibility” or influence.

The regulator has concluded that the individual is not fit and proper to occupy such a role.

UKEIH is a domestic energy supplier, serving approximately 3,000 customers, and operating under two brands, Northumbria Energy and Neo Energy.

This is the first time that Ofgem has proposed to use its new rules, introduced at the start of last year, requiring energy bosses to be ‘fit and proper’ for the job.

Ofgem’s concerns centre around a number of “serious, persistent and recent compliance failings”.

These include a failure to provide basic information about the company when asked by Ofgem and poor customer service.

These breaches have been the subject of three separate Provisional Orders so far this year, the regulator has said.

There will be a consultation period of 21 days, after which time the Enforcement Decision Panel will decide whether to make the Final Order.

Cathryn Scott, Ofgem Director of Enforcement and Emerging Issues, said: “Ofgem’s role is to protect consumers and we are raising the bar and taking firm action against suppliers to ensure they are fit and proper and have robust and sound financials.

“This is our role as a robust regulator and is what customers expect and deserve. out tightened-up rules will help protect billpayers during these very difficult times.”

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