Ofgem Crack Down on Complaint Complacency

Energy regulator Ofgem have this week announced plans to help consumers get a fairer deal by cracking down on the way gas and electricity companies handle complaints.

After an industry wide survey that found the standards applied to dealing with customer complaints varied greatly between providers, Ofgem aim to raise the bar with tough consequences for suppliers that don’t comply.

The new standards will come into force on 1st July this year and will be maintained by the energy regulator via regular audits that will ensure that both home and small business customers are treated fairly.

To drive home the importance of meeting these standards, Ofgem have announced plans to punish suppliers that don’t make the grade with fines of up to 10% of turnover, an amount that would hit the profits of any energy company hard.

Among the new regulations Ofgem encompass safeguards against what they refer to as ‘major frustrations to customers’. These include accepting complaints as valid whether or not they are made in writing, keeping up to date records of complaints so that its not necessary for customer’s to repeat details of their situation during follow up calls and publishing transparent information about the number of complaints received so that customer’s can objectively compare which companies provide the best service.

Alistair Buchanan, Ofgem Chief Executive commented: “We expect the new standards to add to customer confidence by underpinning the pressure that competition places on suppliers to treat customers well. The standards will also reinforce the protection energy network companies are already required to provide. I’m confident that the companies will rise to the challenge. But if they don’t - we now have the ability to take regulatory action.”

These standards are the latest improvement for energy customers and come along with this week’s announcement that an extra £225,000 will be made available to help over 100,000 homes to overcome fuel poverty.