ISSUE 1812 Thursday 11 May 2000

Energy group falters over billing trouble

By Roland Gribben

INDEPENDENT Energy is to halt the sale of electricity to new domestic and small business customers because of long-running billing problems.

The fast-growing electricity, gas and telecoms company has agreed to accept tough restrictions on its operations after further discussions with Callum McCarthy, head of Ofgem, the industry regulatory body. Independent shares slumped another 450 to #21 after the latest threat to its rapid growth. They have tumbled from a high of #36.13 in March.

Householders account for about 40pc of its 200,000 customers, though only 5pc of turnover and profit. The smallest businesses represent a similar amount. The company has expanded aggressively with heavy discounts, but delays in transferring customers and setting up billing mechanisms have resulted in wrong invoices, scores of complaints and thousands receiving no bills.

Independent has struggled to beat the problem and, although there have been improvements, Ofgem says the situation has worsened with customers swamping the company's call centre but unable to get through to discuss their problems.

Mr McCarthy said: "Customers are entitled to receive timely and accurate bills from their gas and electricity suppliers and we are determined to ensure that they do." Independent has accepted a change in its operating licence that means it will not take on any new domestic and small business electricity customers or market to them until it has improved. John Sulley, chief executive, believes the company will have solved the problem in two to three months.

http://www.telegraph.co.uk/et?ac=000122257519214&rtmo=gwrjYNYu&atmo=rrrrrrfs&pg=/et/00/5/11/cnind11.html

-- Carl Jenkins (Somewherepress@aol.com), May 11, 2000