Ofgem closed its investigation into Community Energy Scheme UK Ltd (CES) and Community Energy Scheme Stoke Limited (CESS) on 19 July 2024, after the companies completed a set of actions agreed with the regulator1. The actions covered sales practices up to September 2019, contract terms and the information given to consumers about charges and whether those charges were estimated1.
The bill changes were introduced in September 20231. Monthly, quarterly and final bills were amended to show clearly whether a bill is estimated or actual, what the charges are, and the amount owed or in credit1. Ofgem said the information should help consumers understand their solar energy consumption and raise queries or complaints, and that monthly and quarterly bills have been issued regularly since October 20231.
"CES/CESS has provided information showing that the agreed actions have been completed and, therefore, Ofgem has decided to close the investigation."
CES installs solar photovoltaic (PV) panels on the roofs of social housing in Stoke-on-Trent and sells the electricity from those panels to tenants1. Ofgem opened the investigation on 20 August 2021 into whether CES had contravened consumer protection legislation through its sales and customer service practices, and widened its scope in December 2022 to include CESS, another legal entity contracting with consumers1.
On contracts, all existing and new agreements were amended to include a termination clause allowing consumers to leave the Scheme at any time by paying a termination fee1. The fee was calculated by CES/CESS based on the characteristics of the installed solar PV system and reduces for each remaining year of the contract1. Consumers who remain in the Scheme but do not sign a revised contract still have their existing contract treated as amended to include the new termination clause1.
Consumers who signed up before 30 September 2019 had a one-off opportunity to leave for free1. They received a letter and had 90 days to communicate their decision, then 150 days from that decision to arrange an appointment for the PV system to be reconfigured, and had to pay or agree a payment plan for any outstanding bill for electricity consumed1. Ofgem said a small number communicated their decision to leave but did not arrange an appointment within 150 days, so remain in the Scheme1.
Why it matters for households
The case concerns a model where the electricity supply is tied to equipment installed on the home, rather than a conventional supplier switch. In that arrangement, the contract terms and the termination clause determine whether a household can exit, and at what cost. Ofgem's account states that exit is now possible at any time for a fee that falls as the contract runs down1.
The bill changes bear on a separate point: whether a household can tell an estimated bill from an actual one, and whether the account is in debit or credit1. Ofgem's stated view is that this information supports understanding of consumption and the raising of queries1. The regulator also said the implemented actions achieve a similar outcome to what it might have obtained through a court order or formal undertakings1.
What happens next
The investigation is closed1. Ofgem has not reported any further monitoring or reporting requirements. Consumers needing assistance with the Scheme were directed by Ofgem to the Citizens Advice consumer service, and Stoke-on-Trent residents to Citizens Advice Staffordshire North and Stoke on Trent on 01782 4086251.