Ofgem launches investigation into Community Energy Scheme UK

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Energy regulator Ofgem has launched an investigation into Community Energy Scheme UK’s sales and customer service practices.

The investigation is in relation to sales practices, and solar panel installations, for social housing tenants in Stoke-on-Trent.

The investigation will examine whether the company breached consumer protection rules, including potential breaches of the Consumer Protection from Unfair Trading Regulations 2008 and the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

The opening of this investigation does not imply that Ofgem have made any findings about non-compliance.

The Community Energy Scheme, which was set up in 2018, is an arrangement between Stoke-on-Trent City Council and Community Energy Scheme UK Limited (CES).

CES installs solar photovoltaic panels on Stoke’s social housing roofs and sells the electricity from these panels to the tenants.

Ofgem will use its consumer protection powers to undertake the investigation. The Gas and Electricity Markets Authority is a designated enforcer under Part 8 of the Enterprise Act.

This means that it is empowered to take action to enforce certain consumer protection legislation, such as the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 and the Consumer Protection from Unfair Trading Regulations 2008.

More information about this investigation is available on the Ofgem website.