Ofgem announces new customer service measures

Energy suppliers’ enquiry lines may need to stay open for longer, including evenings and weekends under new proposals from regulator Ofgem.

The new measures are part of a series of proposed reforms to improve standards of customer service both for businesses and households, and follows extensive engagement with suppliers, businesses, consumers and other organisations.

The regulators saus the proposals would establish expectations to ensure all consumers receive a consistent and acceptable level of service regardless of the company they are with. The regulator says that it is taking these steps to drive up standards before this winter to make sure customers – particularly those in a vulnerable situation – are properly served, and to strengthen protections for business energy customers.

Neil Lawrence, Director at Ofgem, said “Suppliers are short-changing too many of their customers, who deserve better. Customers need more support when they are struggling and should be able to contact their supplier without frustration or undue delay when they need help.”

“The plans we are announcing put the welfare of business and domestic consumers first and set out a comprehensive package to tackle poor behaviour by energy suppliers. Good customer service is important for all consumers, but it can make a critical difference to welfare and the safety of the most vulnerable.”

“While we have seen good practice from some suppliers, we expect every company to raise the bar to provide a consistent service that customers can rely on – and this mission should be driven from the top.”

“We believe these recommendations can make a positive difference to consumers and we aim to have changes in place before the cold winter months return.”

Ofgem Chief Rxecutive Jonathan Brearley recently visited Manchester, where he met with several businesses and learnt first-hand about issues troubling the business community because of energy costs and severe stress caused by volatile prices. Brearley also met with Sacha Lord, the Manchester Nighttime Economy Advisor, who has welcomed Ofgem’s market review.

Lord said “These proposals would be a major step forward in ensuring customers are given fair and proper protections against energy companies who have not been as transparent as they could have been. Every week we are being contacted by restaurants, pubs and bar owners up and down the country – the backbone of our hospitality sector – who simply cannot see a viable way forward.”

“Ofgem has led the way on efforts to hold energy companies to account. Reforms that properly protect the rights of consumers could not be more vital and I welcome them wholeheartedly.”

Responding to Ofgem’s non-domestic energy market review, Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB) said “Small firms have been waiting for measures that could help alleviate the soaring energy costs and address the heavy-handed approach of energy suppliers. We’ve been working with Ofgem to make sure the voice of small businesses is heard, so we welcome and are pleased to see today’s publication of the non-domestic market review.”

“We have been calling for a ‘blend and extend’ contract renegotiation for small businesses who fixed their tariffs during market peak last year. We’re glad to see the energy regulator has backed our call and again urge suppliers to step up, act with fairness and adapt.”

“While a handful of energy suppliers have adopted our ‘blend and extend’ proposals, small businesses have been complaining to us that they were excluded from the renegotiation because they secured contracts through a third-party broker.”

“The obligations from energy giants should not be limited just to their direct customers; they must stop washing their hands of customers whose deals are signed via a broker.”

“The issue of small firms being charged disproportionate security deposits is something we constantly hear. Energy suppliers should follow Ofgem’s security deposit best practice guide and stop asking vulnerable small firms for large sums of upfront payments given many are working on little to no cash reserves.”

“We’ve repeatedly urged the Government to close a significant regulatory gap by introducing Third Party Intermediaries (TPIs) regulation, eliminating unethical practices in the sector. It’s encouraging to see Ofgem recognise the importance of this, as well as backing our call to expand access to the Energy Ombudsman.”

“The energy price crisis illustrates the need for firmer action from Ofgem to protect small business customers through cooling off periods – we strongly believe microbusiness should be given more flexibility to cancel a contract and have access to a 14-day cooling-off period for all switches. This will put them on par with domestic customers and we look forward to engaging Ofgem on this further.”