UK electricity and downstream natural gas markets regulator Ofgem has temporarily suspended energy supplier Iresa from taking on new customers for up to three months.
The decision was made following an ongoing investigation against Iresa for issues related to alleged customer service violations.
The electricity supplier is also barred from increasing existing customers’ direct debits.
During the ban period, Iresa is required to take a series of measures to improve customer service such as extended call centre hours and shorter call waiting times.
The company also has to respond to customers who place a callback request by the end of the next working day.
Other actions include writing back to customers who send emails within five working days, closing pending consumer emails, logging and recording all expressions of customer dissatisfaction.
Iresa is mandated to compulsorily implement all the measures suggested by Ofgem, failing which the company’s licence could be cancelled.
The action taken by the regulator comes after multiple complaints from customers against the supplier.
Ofgem chief executive Dermot Nolan said: “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.
“It’s crucial that all suppliers provide customers with good service, including acting quickly and effectively to sort things out wherever problems occur.
“Iresa now needs to act quickly and put its house in order, otherwise, ultimately, its licence could be revoked.”