Paypoint Regulatory News (PAY)

11 Aug 2021 07:00

UPDATE ON STATEMENT OF OBJECTIONS RECEIVED FROM OFFICE OF GAS AND ELECTRICITY MARKETS (“OFGEM”)

PayPoint Plc

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UPDATE ON STATEMENT OF OBJECTIONS RECEIVED FROM OFFICE OF GAS AND ELECTRICITY MARKETS (“OFGEM”)

PayPoint notes the publication today by Ofgem of a ‘Notice of Intention to Accept Binding Commitments’, regarding voluntary commitments proposed by PayPoint to Ofgem to address the concerns raised in the Statement of Objections received on 29 September 2020. The proposed commitments have now been published for public consultation by Ofgem, as part of its ongoing process, and prior to a decision in due course as to whether to accept them.

The Statement of Objections related to certain contractual terms with certain energy suppliers that confer exclusivity to PayPoint for payment services for prepayment energy customers, in combination with exclusivity in retailer arrangements, in contracts entered into prior to October 2018. Ofgem’s findings in the Statement of Objections were provisional and Ofgem stated at the time that no conclusion should be drawn that there had been an infringement of competition law.

After considering Ofgem’s provisional findings and feedback from its clients and retailer partners, PayPoint has voluntarily proposed to Ofgem the following positive commitments to remove certain provisions from its contracts and to provide additional support to vulnerable energy customers:

to remove exclusivity clauses from its current and future client and retailer partner contracts in relation to the provision of over-the-counter and digital energy prepayment servicesto make a £12.5m donation to Ofgem’s Energy Industry Voluntary Redress Scheme (currently administered on Ofgem’s behalf by the Energy Saving Trust)

These commitments remain subject to Ofgem’s ongoing consultation process, and will be implemented following publication of a final acceptance decision by Ofgem.

The Board believes these voluntary commitments are in the best interests of our clients, retailer partners and their customers and provides a constructive and timely route to the resolution of Ofgem’s provisional findings. In making these proposals, PayPoint is reaffirming the importance of delivering value, service and support to its clients, retailers and the communities it serves. This commitment sits at the heart of PayPoint’s strategy to deliver sustainable value to all stakeholders supported by the appropriate governance and oversight.

We will be providing updates to all relevant stakeholders in due course as Ofgem’s consultation process on these voluntary commitments progresses.

Enquiries:

PayPoint Plc Nick Wiles, Chief Executive (Mobile 07768 636 801) Alan Dale, Finance Director (Mobile: 07778043962) Finsbury (telephone: 0207 2513 801) Rollo HeadNidaa Lone(Email: Paypoint@finsbury.com)

ABOUT PAYPOINT GROUP

For tens of thousands of businesses and millions of consumers, we deliver innovative technology and services that make life a little easier.

The PayPoint Group serves a diverse range of organisations, from SME and convenience retailer partners, to local authorities, multinational service providers and e-commerce brands. Our products are split across three core business divisions:

In Shopping, we enhance retailer propositions and customer experiences through EPoS services via PayPoint One, card payment technology, ATMs and home delivery technology partnerships in over 60,000 SME and retailer partner locations across multiple sectors. Our retail network of over 28,000 convenience stores is larger than all the banks, supermarkets and Post Offices put togetherIn E-commerce, we deliver best-in-class customer journeys through Collect+, a tech-based delivery solution that allows parcels to be sent, picked up and dropped off at thousands of local storesIn Payments and Banking, we help companies and their customers make and receive payments quickly and conveniently. This includes our digital payments platform, MultiPay, an eMoney offering that enables cash through to digital transactions and cash solutions providing vital consumer access across our extensive retail network

Together, these solutions enable The PayPoint Group to create long-term value for all stakeholders, including customers, communities and the world we live in.