Ofgem announces major new energy rules for millions of households
Ofgem has announced new proposals which will benefit struggling energy customers.
The energy watchdog is launching a review following complaints about poor customer service standards. The new proposals will ensure customers have better access to support, with firms required to keep phone lines open for longer.
Energy companies will also have to offer 24/7 emergency support for customers who are cut off from their power or gas supply due to issues with their supplier.
In addition, Ofgem has called for “early intervention” from suppliers to identify struggling customers and offer support such as temporary repayment holidays.
It comes after 30 suppliers failed in 2021 due to a surge in wholesale electricity and gas prices. Ofgem also confirmed suppliers will have to ringfence a portion of their customer credit balances, so that households’ cash is better protected.
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On top of this, businesses will have to be kept better informed of how their energy bills are being paid to brokers.
Neil Lawrence, director at Ofgem, said: "Suppliers are short-changing too many of their customers, who deserve better.
"Customers need more support when they are struggling and should be able to contact their supplier without frustration or undue delay when they need help.
"The plans we are announcing put the welfare of business and domestic consumers first and set out a comprehensive package to tackle poor behaviour by energy suppliers.
"Good customer service is important for all consumers, but it can make a critical difference to welfare and the safety of the most vulnerable.
"While we have seen good practice from some suppliers, we expect every company to raise the bar to provide a consistent service that customers can rely on - and this mission should be driven from the top.
"We believe these recommendations can make a positive difference to consumers and we aim to have changes in place before the cold winter months return."
The update from Ofgem comes after its price cap fell to £2,074 a year for a typical household paying by direct debit from July 1. The Ofgem price cap limits what you pay for each unit of gas and electricity you use, plus the maximum daily standing charge.
There isn’t a total amount on how much energy you pay - the headline figure is used to illustrate what someone with typical usage can expect to pay over a year. You can end up paying more or less, depending on how much energy you use.
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