The energy regulator has closed its investigation into a controversial solar panel scheme after three years.

Ofgem says it is satisfied that Community Energy Scheme UK Ltd (CES) has now carried out actions relating to contracts and billing which it proposed last year, resulting in the closure of the case.

The Community Energy Scheme, an arrangement between Stoke-on-Trent City Council and Community Energy Scheme UK Ltd, part of the Solarplicity Group, was launched in 2018. Around 5,000 council houses have had photovoltaic solar panels installed under the scheme, but it has been plagued with complaints over contracts, billing and installations.

In 2021, Ofgem started an investigation looking at whether CES had breached consumer protection laws. Last year, the company offered to give customers a one-off opportunity to leave the scheme for free within a 90-day period.

CES has 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. Ofgem announced the closure of the case in an update on its website.

The regulator said: "On 27 October 2023, Ofgem announced that it had accepted actions Community Energy Scheme UK Ltd (CES) and Community Energy Scheme Stoke Limited (CESS) had proposed to take to address key concerns regarding sales practices conducted up to September 2019, existing and new contracts signed by consumers and billing information provided to consumers about charges applied and whether charges are 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 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."

In order to leave the scheme for free, customers had to settle any outstanding bill and allow CES to 'reconfigure' the photovoltaic system at their home. Ofgem says a small number of customers accepted the opportunity to leave the scheme, but did not engage with CES to arrange an appointment for their system to be reconfigured, meaning they remained in the scheme.

CES updated its bill format in September last year to provide clear information on whether the amount owed is based on an estimate and what the charges are. Ofgem says this new format 'should help consumers understand their solar energy consumption and/or raise any queries or complaints.

David Elbourne, chief executive of the Solarplicity Group, said: "The company is pleased that Ofgem have seen fit to close the investigation without having to resort to orders and they recognise the actions we took have rectified any issues. I would like to thank our staff and customers for working hard and supporting us."

Customers looking for support in dealing with the scheme should contact Citizens Advice Staffordshire North and Stoke on Trent on 01782 408625 or [email protected]

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