Energy suppliers will be required to prioritise enquiries from vulnerable customers under new rules announced by Ofgem. These rules, which will come into effect in December, aim to ensure that customers who are struggling with their energy bills receive the necessary support.
Under the new requirements, suppliers will need to contact customers if they miss two monthly payments or one quarterly payment. They will then assess whether the customers are facing difficulties with their bills and offer appropriate assistance, such as affordable payment plans or repayment holidays.
In addition, suppliers will be obligated to publish the Citizens’ Advice ratings of their customer service. This will allow the public to compare suppliers based on factors like call wait times and the quality of responses. Ofgem also plans to develop new measures of customer service in collaboration with the sector, with the aim of publishing them next year.
During a speech at the Energy UK conference, Ofgem’s CEO, Jonathan Brearley, commended the progress made by some suppliers but challenged the entire sector to meet the high standards set by these leaders. He warned that Ofgem would take action against suppliers that fall short of customer service standards, citing recent cases where companies made multi-million-pound payments for poor service.
The new standards, developed after a statutory consultation earlier this summer, seek to improve customer access to suppliers, provide support to households struggling with bills, and enhance overall customer satisfaction. By incorporating these rules into supplier license conditions, Ofgem will have an easier time taking action against suppliers failing to meet the requirements.
Specific requirements include being available through various contact methods at times that suit customers’ needs, prioritising vulnerable customers and offering free contact methods for those experiencing financial difficulties, offering debt repayment plans promptly, and considering temporary debt repayment holidays when appropriate. Suppliers will also be required to make their Citizens Advice star ratings easily accessible to customers.
Brearley emphasised the importance of good customer service and debt management support, particularly for vulnerable customers, in light of increasing global pressure on gas prices that may lead to higher bills. He called for changes in areas such as long call waiting times, unresponsive letters, and lack of empathy towards customers’ personal circumstances.
To ensure consumer protection and support for those in debt this winter, Ofgem is collaborating with industry and consumer groups. The regulator commended Energy UK’s Winter Voluntary Debt Commitment and campaign, which encourages customers to reach out to their suppliers if they are struggling with bills. Ofgem intends to explore the development of a new measure of customer experience, engaging with suppliers, Citizens Advice, and other stakeholders in the process.
In addition to these new rules, Ofgem has implemented other measures this year to enhance consumer protection. These include increasing winter storms compensation, ending the prepayment meter premium, introducing additional support credit, and expanding prepayment meter protections for vulnerable households.
Ofgem will soon seek input on standing charges, seeking feedback from consumers, charities, suppliers, and customer representatives as it continues to address this issue.
Overall, the new rules aim to improve customer service, support vulnerable customers, and enhance consumer satisfaction in the energy sector. Ofgem remains committed to ensuring that energy suppliers consistently provide better outcomes for consumers through reputational incentives and a competitive market.
