MILLIONS of energy customers could be handed better compensation when things go wrong with their supplier.
The energy watchdog has promised to shake up rules and warned suppliers to do better.
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Ofgem warned that “no options are off the table” and the sector needed “clear penalties” after customer satisfaction levels fell to their lowest levels during the energy crisis.
It added that it will explore new powers to take “firm action” against failing suppliers.
The proposals centre on revisions to back billing rules, strategies for enhancing billing accuracy, and improvements to compensation regulations, including higher payments.
Plus, those with faulty smart meters could also benefit from improved protection.
Tim Jarvis, Ofgem’s director general of markets, said: “Consumer trust depends on good customer service, so it is critical that energy suppliers are reliable, accurate, accessible and fair.
“Every energy consumer should have confidence that the system works in their interests and when things go wrong, they will be fixed quickly and effectively. The steps we are setting out today will bring us closer to that goal.”
Ofgem says it will consult with stakeholders over the coming months on the proposals in its consumer confidence programme.
Here’s everything we know so far…
COMPENSATION SHAKE-UP
Ofgem’s proposal states that it wants to build on its existing rules to ensure consumers get appropriate automatic compensation when basic things go wrong, and suppliers are held accountable when they do.Â
The Electricity and Gas (Standards of Performance) (Suppliers) Regulations 2015 requires suppliers to meet certain minimum standards across a range of services.
This includes making and keeping appointments, completing a supplier switch, providing a customer’s final bills, and refunding a former customer’s credit balances.
If a supplier fails to meet any of these standards, it must automatically compensate the impacted customer.
Since 2015, the automatic compensation level has been set at £30.
For example, under the current rules, if your current supplier takes more than five days to transfer your services, you’ll be entitled to compensation.
Your old energy supplier must also pay out if it fails to issue a final bill within six weeks of a switch.
So if a switch was not completed within five working days and your old supplier didn’t issue a final bill within six weeks of the switch, you’d receive £60.
However, a recent consultation proposed increasing the automatic compensation amount by £10 to £40, a change that Ofgem hasn’t ruled out.
As part of its latest proposals, Ofgem has also hinted at introducing new regulations for companies regarding smart meter installations.
It hasn’t ruled out extending automatic compensation for customers who experience delays or have malfunctioning devices that go unrepaired.
Do I need to apply for compensation?
IF you’re due compensation, it should be paid to you automatically.
If you don’t get it, you should contact your new or original supplier immediately to let it know – it’s then up to that supplier to sort it.
If it’s not sorted, you can go to the Energy Ombudsman.
But the way in which you’ll be paid the compensation is up to your supplier.
It could be a bank transfer or credit card refund if it has your details, or it may send you a cheque.
If you have a prepayment meter, it could also add credit to that.
If you’ve not received a refund, contact your energy supplier directly.
You’ll find details of your current supplier on a recent energy bill.
Or log into your online account if you have paperless billing.
If you aren’t happy with their response – submit a complaint.
STRICTER BACK-BILLING RULES
Ofgem has also said it will review the back billing rules to reduce how far back a supplier can bill a customer where the error was the supplier’s fault.
The watchdog argued that its introduction in 2018 ensured that energy suppliers bill their customers accurately and fairly.
Under the current rules, your supplier cannot send you a bill for energy you used more than 12 months ago.
This means that if a supplier fails to bill a customer correctly and only realises the mistake later, they cannot ask for payment for energy consumed over a year ago.
However, Ofgem’s new proposals will consider shortening this time even further.
It’s important to note that back billing rules don’t apply if a customer has obstructed their supplier’s attempts to obtain meter readings or has tampered with the meter.
IMPROVING CUSTOMER BILLS
The watchdog said it would also review the rules regarding billing accuracy and supplier billing practices.
Ofgem’s report states: “Accurate billing is fundamental; it ensures customers can budget effectively, avoids unexpected shocks and builds trust and satisfaction.
“But it is also one of the most common complaints.
“We will, therefore, and as a priority, review the rules around billing accuracy and supplier billing practices to understand where improvement is needed and whether compliance action is required.”
This proposal highlighted that it will specifically look at forcing energy suppliers to issue all customers with monthly bills.
How do I complain about my energy supplier?
Similar to financial services firms, energy companies have to have a complaints procedure for customers to follow.
When you make a complaint, make sure you follow this so they have the information they need to resolve the issue.
Explain what the problem is and what you want your supplier to do about it.
Check your energy supplier’s website for an explanation of how to launch a complaint.
Energy suppliers have eight weeks to respond and come to a decision.
If it doesn’t or you’re not happy with the response, you can take the firm to the Energy Ombudsman.
The Energy Ombudsman may be able to help if you have a complaint about an energy or communications provider.
Before you can submit your complaint to it, you must have logged a formal complaint with your provider and worked with the firm to resolve it.
You must also have received a so-called deadlock letter, where the provider refers your complaint to the Energy Ombudsman.
You can also complain if you haven’t had a satisfactory solution to your problem within eight weeks.
The Energy Ombudsman then bases its decision on the evidence you and the company submit.
If you choose to accept its decision, your supplier then has 28 days to comply.
The Ombudsman’s decisions are binding on the energy company.
If your supplier refuses to follow the instruction, the Ombudsman may get in touch with Ofgem to remedy the situation – but there’s no set period for escalating issues to the regulator and it’s not up to the customer.
If an individual chooses not to accept the Ombudsman’s final decision, they lose the right to the resolution offer.
Read more on the Scottish Sun
Customers still have the right to take their complaint further through the courts.
But remember this can be a costly and lengthy exercise, so it’s worth thinking carefully before taking this step.
What energy bill help is available?
THERE’S a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
