Energy regulator considers increasing compensation payouts for poor service
Ofgem, the energy regulator, is considering increasing the compensation paid out to consumers when energy suppliers provide poor service.
Under these new proposals, you'd be owed £40 (rather than the current £30) if your energy supplier fails to perform in line with industry standards.
Ofgem has said that the increase is to account for inflation.
Here, we look at when you're entitled to compensation and other measures Ofgem has introduced to improve customer service in the energy sector.
We want to hear about any poor customer service experiences you've had in the past three years. Please take a few minutes to answer our short survey.
When am I entitled to compensation?
Ofgem's 'Guaranteed Standards of Performance' outline criteria energy firms must meet around:
- Maintaining and keeping appointments.
- The time it takes to switch customers to new suppliers.
- Unauthorised switching.
- The time it takes to provide final bills and return credit balances.
- Investigating faults with meters.
- Reconnecting a supply after a debt-related disconnection.
If an energy supplier fails to meet these standards, it must automatically pay you compensation.
And if the supplier doesn't provide the compensation within 10 working days, it must make a further payment.
Under the new proposed rules, if your energy supplier doesn't meet these standards (such as switching you to your new supplier within five days), you'd be owed £40 in compensation rather than £30.
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Improving energy customer service
The energy sector has come under fire for poor customer service in recent years following steep bill hikes.
A Which? investigation last year found that energy customers were failing customers on a range of issues, such as the range of contact methods they provided and how well they resolved queries.
Ofgem's consultation on whether to increase compensation is the latest in a series of changes designed to improve standards for energy customers.
Other measures that have been introduced include forcing suppliers to pay compensation more quickly when they fail to switch a customer on time and requiring suppliers to prioritise inquiries from vulnerable customers. Energy firms must also offer proactive support to people who are struggling to pay their bills.
- Find out more: disabled consumers failed by poor customer service
7 ways energy customers can take action
- Find out how to get the best energy deal - when we last checked, there were 15 deals cheaper than the current price cap.
- If you think you're owed compensation and haven't received it, contact your energy supplier.
- If you think you've been overcharged you can challenge the bill using our letter template.
- Go to the ombudsman if you've tried to resolve your a dispute with your supplier, but you're not getting anywhere. You can contact the Energy Ombudsman.
- Join the Priority Services Register (PRS) if you have a disability or vulnerability or live with children under five. This is used by companies providing essential services to ensure vulnerable customers get additional assistance where needed.
- Find out how to get help if you're struggling to pay your energy bills.
- Tell us about your experience: whether your supplier has failed to switch you to a new supplier or is incorrectly billing you, we want to hear about your experiences with your energy supplier - get in touch here.
