In response to an investigation by Ofgem, Community Energy Scheme UK Ltd (CES) and Community Energy Scheme Stoke Ltd (CESS) have proposed a series of actions aimed at addressing key concerns raised during the probe, which commenced on 20th August 2021.
The proposed reforms include the introduction of a termination clause in contracts, allowing consumers to exit the scheme at any time, subject to a termination fee that decreases over the remaining years of the contract.
Additionally, the bill format has been modified to provide clear information about charges, including whether they are estimated.
These measures are intended to resolve concerns identified during the investigation and ensure that consumer contracts comply with legal requirements.
Ofgem has accepted these proposals, as they are expected to achieve similar outcomes to the exercise of the authority’s enforcement powers.
Under these reforms, some consumers who joined the Community Energy Scheme prior to September 30th, 2019, will have the opportunity to leave the scheme at no cost.
Those who choose to remain in the scheme will see their contracts amended to include the new termination clause.
For consumers who joined the scheme after September 2019, their contracts will also be amended to include the new termination clause.
Ofgem said the case will remain open for monitoring the implementation of these actions and once completed, it will be officially closed.
