Ofgem is putting pressure on energy companies to improve customer service
- Energy regulator Ofgem has drawn up new rules for gas and electricity companies
- These rules will reinforce poor customer service and help the vulnerable
Energy companies are being forced to improve low levels of customer service with new rules from regulator Ofgem.
Gas and electricity companies have long been criticized for low levels of customer service.
Charity Citizens Advice did not award an energy company higher than 3.65 out of 5 stars for helpfulness in an October review.
Meanwhile, This is Money has extensively reported on customer service mishaps at energy companies, such as Ovo making horrific billing errors and other companies hitting households with bill increases of 8,000 percent.
Poor service to customers: Energy companies are not doing enough to meet customer needs, Ofgem says
Earlier this year, energy regulator Ofgem said that 'suppliers' customer service is generally not meeting the needs of many consumers', citing long waiting times and the ease of speaking to energy company staff as specific issues.
Now Ofgem has introduced new rules for energy companies' customer service.
These rules are designed to make it easier for customers to talk to their energy company and to support people who are struggling to pay their gas and electricity bills.
Ofgem will require energy companies to:
- Be available through different contact methods and at times that suit the customer's needs
- Prioritize vulnerable customers and their representatives
- Offer free contact methods for people struggling to pay their bills
- Offer debt repayment plans and consider offering repayment holidays
Meanwhile, Ofgem is also forcing energy companies to publish details of their customer service performance on their websites.
Gillian Cooper, energy director at Citizens Advice, said: 'By requiring suppliers to display their Citizens Advice star rating, we hope that businesses will be encouraged to quickly improve their customer service when we identify issues.
“If someone is dissatisfied with their supplier, check the star rating because there may be something better on the market.”
Energy companies that breach the new rules could be punished by Ofgem.
The energy regulator also hopes that energy companies will now compete in the field of customer service.
Ofgem's price cap limits the amount of energy companies that can charge their customers variable rates via direct debit – currently more than 80 percent of UK households.
The price cap is currently £1,834 per year for average energy consumption, rising to £1,928 per year from January 1.
How to escalate your energy complaint
If you cannot resolve your complaint with your energy company, you can submit complaints to the Energy Ombudsman.
This is a free service that handles customer energy complaints related to customer service, billing, switching suppliers and more.
Before you can complain to the Energy Ombudsman, you must first speak to your supplier and make a formal complaint.
If you do not hear anything within eight weeks, or if it has been eight weeks since a final decision was made, you can go the Energy Ombudsman to file another complaint.
It could take months before a decision is made. However, you can appeal if you believe that the Ombudsman has acted unfairly.