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SI/2008/98

EWOV became aware of a retailer who changed its policy in regard to requesting either a security deposit or a direct debit arrangement set up for new customers.

Section 8.1 of the Energy Retail Code outlines the circumstances when it is permissible to request a refundable advance. Based on cases EWOV received, the retailer required new customers to provide either a security deposit or a direct debit arrangement if they didn't have a utility credit rating.

Following an investigation, EWOV concluded that retailers can only seek refundable advances in a limited range of circumstances. Customers must be made aware of all applicable fees and charges prior to signing up to a new retailer.

Following this investigation, the retailer agreed to amend the circumstances in which it can request refundable advances.


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