Energy supplier pays £1.65m for customer service failures

An energy supplier has paid £1.65m for customer service failures following an investigation by Ofgem.

Maxen Power, which supplies more than 10,000 non-domestic customers, was found to have breached its licence conditions by not having robust systems in place to protect its customers.

This allowed third-party representatives to sign up new customers without their consent by claiming to work for other suppliers.

Ofgem said Maxen Power also failed to put an adequate complaint handling process in place.

As a result of the licence breaches, the company has paid £1.65m to the Energy Industry Voluntary Redress Fund which provides money to charities that deliver energy-related projects and support energy consumers in vulnerable situations.