Criticised solar panel firm satisfies watchdog

Around 5,000 council houses had photovoltaic solar panels installed under the scheme, but resident complained about contracts, billing and installations.

A solar panels firm that was investigated after complaints it was mis-selling its products has been told by the energy regulator it is clear to carry on trading.

Ofgem has told bosses of Stoke-on-Trent's Community Energy Scheme the actions they took in the wake of the complaints had been satisfactory.

About 5,000 council houses had photovoltaic solar panels installed but there had been complaints from residents over contracts, billing and installations.

The Community Energy Scheme started in 2018 and was an arrangement between Stoke-on-Trent City Council and Community Energy Scheme UK Ltd (CES), part of the Solarplicity Group which collapsed in 2019.

Now, Ofgem has said it has closed its investigation after monitoring the company's actions since last October.

The scheme offered residents reduced energy bills if they allowed solar panels to be installed on their roofs.

However, 100 people said they were "misled" over contracts with some claiming they were signed up to 25-year agreements without their knowledge.

In August 2021, Ofgem said it would investigate how CES had treated customers and would examine its sales practices.

Last year, the company offered to give customers a one-off opportunity to leave the scheme for free within a 90-day period.

It also updated its contracts to include a termination clause, allowing any customer to leave at any time by paying a termination fee, and made its bills clearer around estimates.

'No enforcement powers'

In a statement on its website, the regulator said it accepted actions from the company in October 2023 after concerns about sales practices conducted up to September 2019.

This had including investigating existing and new contracts signed by consumers and billing information provided to consumers about charges applied and whether charges were estimated.

“Since October 2023, Ofgem has been monitoring the implementation of the agreed actions. CES/CESS has provided information showing that the agreed actions have been completed and, therefore, Ofgem has decided to close the investigation," Ofgem said.

“Ofgem considers the implemented actions have had the effect of achieving a similar outcome to that the authority may have obtained by exercising its enforcement powers to seek a court order or formal undertakings.”

David Elbourne, chief executive of the Solarplicity Group, said the firm was plreased the investigation was complete

"[This was] without having to resort to orders and they recognise the actions we took have rectified any issues," he said.

"I would like to thank our staff and customers for working hard and supporting us.”

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.