Ofgem Lays Down the Law: Energy Suppliers to Prioritise Vulnerable Customers
It's the dawn of a new era for energy consumers. The UK's energy regulatory body, Ofgem, has announced fresh regulations ensuring that vulnerable customers receive special attention from their energy suppliers.
Prioritising Vulnerable Consumers
Come December, these regulations will usher in a period where energy suppliers have to be more proactive than ever. If a customer skips two consecutive monthly payments or misses a quarterly payment, it's no longer about just numbers. Suppliers will now have to initiate a conversation to understand the root cause of these payment misses. Based on the outcomes, customers might be offered feasible payment plans or even repayment holidays if the situation warrants.
Transparency is Key
But there's more to this story. Ever waited too long on a call with your energy supplier or felt disappointed with the quality of their response? Ofgem aims to bring a certain transparency to the table. Energy suppliers will soon be mandated to display their customer service ratings from Citizens Advice publicly. This move promises to provide consumers with a clear perspective on aspects such as call wait durations and the overall quality of responses.
Furthermore, in 2023, Ofgem, hand in hand with the energy sector, plans to introduce new metrics for assessing customer service.
Raising the Bar for Customer Service
At the recent Energy UK Annual Conference, Ofgem’s CEO, Jonathan Brearley, shared his insights. He acknowledged the positive strides made by the industry concerning customer service but emphasised the need for consistency. The high standards set by industry leaders should be the benchmark for all.
Brearley didn't mince words, stating unequivocally that Ofgem won't shy away from taking stringent measures against any supplier that falls short of customer service expectations. The past has seen companies slapped with hefty penalties, and this trend might continue if service standards aren't met.
In light of the global events driving up gas prices, Brearley stressed the importance of top-notch customer service and extended support, especially for those most at risk. He stated, “Amid rising bills, the industry must champion exceptional customer service and offer support in debt management.”
Citizens Advice Weighs In
Gillian Cooper, the Head of Energy Policy at Citizens Advice, shared her views on Ofgem's initiatives. Highlighting the plight of struggling households, she said, “Brutal debt collection methods by energy suppliers only add to the woes of these households.”
She added, “In today's age of soaring energy prices and increasing energy debts, the humane treatment of customers is paramount. Suppliers who fail their customers should brace themselves for repercussions.”
With these changes on the horizon, the future looks promising for energy consumers across the UK.
