Not upheld: Account administration errors complaint against Utility Warehouse Limited

Decision detail

Summary

Mr and Mrs C complained that Utility Warehouse Limited failed to renew their home emergency insurance policy without proper notification, leaving them without cover when they attempted to make a claim in January 2024. Utility Warehouse had declined renewal due to arrears on the customer's energy account, which resulted partly from an incorrect tariff applied by the firm. Although the Energy Ombudsman confirmed the tariff error and Utility Warehouse credited approximately £400, an outstanding balance remained. The ombudsman found the non-renewal was fair because the insurance was only available to customers in good standing, the premiums were part of the same account as the energy supply, the policy terms permitted non-renewal for arrears, and notification was properly sent. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Utility Warehouse had a fair basis to decline renewal because: (1) the insurance is only available to existing customers with the premiums added to the energy bill, making it part of the same account; (2) the policy terms explicitly state there is no guarantee of renewal and it may not be offered where premiums have not been paid; (3) there was a valid outstanding balance on the account, even though it resulted from a tariff error; (4) Utility Warehouse properly notified them via email that the policy would not be renewed; and (5) customers expecting renewal should have contacted the firm if they did not receive renewal correspondence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website