Energy Supplier Maxen Power Pays £1.65 Million for Customer Service Failures

Maxen Power, an energy supplier serving over 10,000 non-domestic customers, has agreed to pay £1.65 million after a recent investigation revealed serious customer service issues. The payment, ordered by energy regulator Ofgem, is in response to the company’s failure to meet industry standards, leaving customers vulnerable to financial difficulties.

Ofgem's investigation found that Maxen Power lacked the proper systems to protect its customers, which led to third-party representatives signing up new customers without their consent. These representatives falsely claimed to work for other suppliers, undermining trust and putting customers at risk of being enrolled in services they didn't agree to.

Additionally, Maxen Power created obstacles for tenants trying to prove changes of tenancy. Customers were asked for an excessive amount of documentation, and the process was so slow that tenants were at risk of being locked into more expensive “deemed rate” tariffs—rates that can lead to mounting debt and financial strain.

The energy supplier also fell short in handling complaints. With a high number of customer grievances, the most common issues centered around poor communication, difficulty in changing tenancies, and mis-sold tariffs.

Dominic Alexander, Deputy Director of Enforcement at Ofgem, commented, “Our job is to protect energy consumers, and we expect suppliers to treat their customers fairly. Maxen Power clearly didn’t meet those expectations. It’s troubling that some businesses faced debt because of the supplier’s failure to offer a clear, reliable service.”

As part of the penalty, Maxen Power has paid £1.65 million to the Energy Industry Voluntary Redress Fund, which supports charities focused on helping vulnerable energy consumers. This payment is aimed at making amends for the harm caused and providing support to those in need.

In response to the findings, Ofgem has worked closely with Maxen Power to improve its customer service policies and practices. Among the changes, Maxen Power has updated its “deemed rates” policy to protect customers from sudden price hikes and made it easier for tenants to switch suppliers. Ofgem will continue to monitor the company to ensure these improvements are upheld.

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