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UK energy suppliers to pay higher compensation to customers

Ofgem plans to raise compensation payments for energy suppliers' service failures from £30 to £40

Ofgem has proposed increasing the compensation payments that energy suppliers must give customers if they fail to meet the Guaranteed Standards of Performance (GSoP).

The payment would rise from £30 to £40, reflecting inflation since the amount was set in 2015.

The move follows feedback from stakeholders on earlier proposals and aims to ensure compensation levels match the cost of living.

The GSoP, introduced by Ofgem, require suppliers to meet specific service standards.

Failure to do so triggers an automatic payment to customers.

This includes failing to keep appointments, fix meter faults, or switch suppliers within five working days.

Beth Martin, Director of Consumer Protection and Competition at Ofgem, said:  ”The guaranteed standards of performance set a clear expectation of the minimum standards suppliers must deliver for their customers.

“When these are not met, it is only right that the customer is fairly and automatically compensated.”

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