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Ofgem’s Plan to Improve Treatment of Energy Customers

To address the poor treatment of vulnerable customers, Ofgem, the energy regulator, will mandate that energy suppliers provide dedicated phone lines for needy households.

Following a decline in customer service during the energy crisis, Ofgem is planning a crackdown on supplier conduct to tackle issues such as long call waiting times and difficulties in contacting companies.

Today, Ofgem will launch a consultation to explore methods of enhancing service quality and to implement improvements before the next winter season. One proposed measure is a new rule requiring suppliers to prominently display third-party customer service data on their websites.

These actions come in response to the scandal surrounding the forced installation of prepayment meters. Following the ban on this practice earlier this year, which stemmed from allegations that debt agents for British Gas had disregarded signs of vulnerability when installing meters, Ofgem introduced new installation rules that remain in effect.

Research conducted in collaboration with Citizens Advice has revealed a decline in retail customer satisfaction, dropping from 74% at the end of 2018 to 66% by the end of 2022.

The energy industry has faced significant challenges since the onset of the pandemic in 2021, exacerbated by the Ukraine invasion, leading to the failure of nearly 30 energy suppliers.

Ofgem urges suppliers to promptly offer advice and default payment plans to households struggling with bill payments. Furthermore, the regulator aims to prevent suppliers from demanding minimum repayments when customers fall behind.

Recognizing the difficulties those in vulnerable circumstances face in reaching their suppliers promptly, Ofgem calls on companies to establish dedicated hotlines to cater to their needs.

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