14 December 2023 , 12:54
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Energy firms must contact vulnerable customers if they miss payments as part of new rules that come into force today.
Ofgem is now instructing energy companies to contact vulnerable customers if they miss two monthly or one quarterly payment payments, to see if they are struggling to pay their bills. Energy firms must then offer payment plans or repayment holidays if appropriate.
Companies will also need to show their Citizens Advice customer service rating so households can compare them on things like call waiting times and the quality of their help. Speaking when the new rules were announced in October this year, Ofgem boss Jonathan Brearley said: "With recent global events increasing pressure on gas prices, it's likely that bills will rise further.
"This is why the industry needs to do all it can to ensure good customer services and provide help with managing debt, especially for the most vulnerable.In the last year, we have seen some good examples of suppliers stepping up their support for customers. However, despite this, the feeling of those on the frontline working with vulnerable households is that more still needs to be done.
"Long wait times to speak to someone on the phone; letters not replied to; lack of empathy for people's personal circumstances. This needs to change... In particular for vulnerable customers, we expect more proactivity and a more sympathetic response."
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It comes as energy bills are set to rise again in January, when the new higher Ofgem price cap kicks in. Ofgem has announced its price cap will rise to £1,928 on January 1, 2024. This will remain in place until March 31, when the price cap will be updated again.
The price cap sets the maximum rate energy firms can charge per kilowatt (kWh) hour for gas and electricity you use, along with standing charges. Standing charges are what you have to pay no matter how much energy you use.
The headline figure is what a direct debit customer with "typical energy consumption" can expect to pay each year based on wholesale energy prices. The price cap is slightly different if you're a prepayment customer, or if you pay on receipt of bill.