Ofgem has closed its investigation into Community Energy Scheme UK Ltd (CES) and Community Energy Scheme Stoke Ltd (CESS) following compliance actions taken by the companies.
These actions address key concerns regarding sales practices, existing and new contracts and billing information.
The investigation began on 20th August 2021, examining whether CES violated consumer protection laws through its sales and customer service practices.
In December 2022, the scope expanded to include CESS.
CES installs solar PV panels on social housing roofs in Stoke-on-Trent, selling the electricity to tenants.
On 27th October 2023, Ofgem announced the completion of its investigation into CES and CESS.
The investigation focused on sales practices up to September 2019, contract terms and billing transparency.
CES and CESS proposed actions to resolve these issues, which Ofgem has accepted.
From October 2023, Ofgem monitored the implementation of these actions.
The companies provided information confirming that the required changes had been completed.
As a result, the investigation has now closed.
Key measures taken by CES and CESS include allowing some consumers who joined the Community Energy Scheme before 30th September 2019 to exit the scheme without penalty.
These consumers had a 90-day period to communicate their decision and an additional 150 days to arrange the reconfiguration of their solar PV systems.
Outstanding bills for consumed solar electricity had to be settled or a payment plan agreed upon.
Contracts were updated to include a termination clause, allowing consumers to leave the scheme at any time by paying a termination fee.
Billing formats have been revised to clearly indicate whether charges are estimated or actual, detailing the charges and the amount owed or in credit.
These changes, implemented in September 2023, aim to improve transparency and help consumers understand their solar energy consumption and address any issues with CES and CESS.
Ofgem believes these actions achieve similar outcomes to what might have been obtained through enforcement powers.
A spokesperson for Ofgem told Energy Live News: “Protecting consumers is at the heart of Ofgem’s mission.
“Our intervention has successfully delivered changes to the terms that CES agrees with customers, giving people the right to leave the scheme and increasing transparency of the costs included in their bills.
“We are satisfied that CES has completed the actions required as part of our compliance activity, and the investigation has now closed.”
