Ofgem Closes Investigation into Maxen Power – What It Means for Business Energy Customers

Ofgem Closes Investigation into Maxen Power Supply Limited

On 5 December 2024, Ofgem announced the closure of its investigation into Maxen Power Supply Limited, following a detailed review of the company’s compliance with key Standard Licence Conditions (SLCs). This marks the conclusion of a regulatory probe initiated in November 2023 to assess whether Maxen Power had adhered to its obligations under its Gas and Electricity Supply Licences.

Background of the Investigation

The investigation was launched to examine Maxen Power’s compliance with SLCs 0A, 4A, 7A, 7.3, 14, and 14A. These conditions relate to:

• Microbusiness customer service standards
• Operational capability
• Deemed contract terms
• Customer supply procedures
• Customer transfer policies



During the investigation, Ofgem identified significant concerns, particularly around Maxen Power’s Change of Tenancy (CoT) policy and the monitoring of Third-Party Intermediaries (TPIs) responsible for customer referrals. Consequently, on 10 May 2024, the Gas and Electricity Markets Authority issued a Provisional Order (PO), mandating Maxen Power to take corrective actions.

Corrective Measures and Compliance

Under the PO, Maxen Power was required to:

• Implement policy and procedural changes
• Commission an independent audit to assess compliance with SLCs 0A and 4A
• Suspend all sales, marketing, and new customer acquisition activities



Maxen Power cooperated with Ofgem and worked towards rectifying the identified issues. As a result, the PO was revoked on 7 August 2024 after Ofgem determined that the company had taken adequate measures to comply with the relevant SLCs.

Findings and Outcomes

The investigation concluded that Maxen Power had contravened SLCs 0A, 4A, and 7.3. Additionally, it failed to report previous TPI infractions in a timely manner, breaching SLC 5A. However, there was insufficient evidence to confirm breaches of SLCs 7A, 14, and 14A.

As part of its response, Maxen Power has:



• Accepted Ofgem’s findings
• Submitted a voluntary redress payment of £1,650,000 to Ofgem’s Energy Industry Voluntary Redress Fund
• Committed to updating its Deemed Rates policy
• Amended contractual terms related to disconnection and reconnection charges

What This Means for Business Energy Customers

For businesses navigating the complexities of energy contracts, this investigation highlights the importance of working with trusted and transparent energy consultants. At Smart Energy Company, we help businesses secure the best energy deals while ensuring compliance with industry regulations.

By partnering with us, businesses can benefit from:

• Market expertise: We monitor the energy market daily to provide insights into the best contract options.
• Regulatory assurance: We work with suppliers who meet strict compliance standards to protect your business.
• Bespoke energy solutions: We tailor energy contracts to suit your business needs, ensuring cost efficiency and long-term stability.

If you're concerned about your current energy contract or want to explore better options, get in touch with Smart Energy Company today. Our team is here to ensure you receive the best advice and competitive rates while staying compliant with industry regulations.

Ongoing Oversight and Consumer Protection

Ofgem has stated that it will continue monitoring the implementation of Maxen Power’s new policies and procedures to ensure full compliance. Dominic Alexander, Deputy Director of Enforcement at Ofgem, emphasised the regulator’s commitment to consumer protection:

"Our duty is to protect energy consumers, and we expect all suppliers to look out for their customers and treat them fairly."

The closure of this investigation serves as a reminder of the importance of regulatory compliance in the energy sector. It highlights the need for energy suppliers to prioritise transparency, fair practices, and accountability in their operations.

For further details, Ofgem’s full case closure statement is available here.