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Ofgem proposes automatic compensation for energy customers

The energy regulator has outlined new proposals to improve customer service in the energy sector

Ofgem has announced a series of proposals to improve customer service standards in the energy sector.

These proposals aim to address falling customer satisfaction levels, which hit a low during the recent energy crisis.

Despite some improvement, the energy sector still lags behind others, such as banking, in terms of customer service ratings.

The regulator’s plan, titled “Consumer Confidence: A Step Up In Standards,” outlines several measures, including revising rules on back billing when the supplier is at fault, reviewing billing practices for better accuracy, and ensuring automatic compensation for customers when services fail.

Ofgem is also considering adopting a model similar to the Financial Conduct Authority’s Consumer Duty to hold suppliers more accountable.

Tim Jarvis, Director General, Markets, said: “Consumer trust depends on good customer service, so it is critical that energy suppliers are reliable, accurate, accessible and fair.

“We are looking at the big picture here, and it’s not just making small changes we want to see today.

“It’s about building a service structure capable of helping customers navigate a more complex future market, as new technology like electric vehicles and heat pumps rapidly changes the way consumers interact with their supplier.

“We will use all the powers at our disposal and drive the improvements we want to see but do not think the market will deliver without our intervention.”

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