Ofgem proposes shake-up in energy industry, requiring suppliers to operate evening helplines

The energy regulator in Great Britain is proposing new rules that would require energy suppliers to keep their customer service lines open in the evenings and on weekends during the winter season. The purpose of these rules is to provide assistance to struggling customers. Ofgem, the regulator, has outlined several proposals aimed at preventing energy suppliers from shortchanging households and businesses, as well as improving customer satisfaction.

Under these proposed rules, energy suppliers would be required to extend their helpline hours and offer more support to households facing financial pressures. This could include providing temporary repayment holidays on energy bills. Additionally, suppliers would need to identify vulnerable customers in need of immediate assistance and offer 24/7 support to customers experiencing a cut-off in electricity or gas due to supplier faults.

These proposals were announced alongside measures aimed at protecting small businesses from exploitative practices by rogue energy brokers. Ofgem plans to enforce transparency by making energy suppliers disclose the amount of commission they pay to brokers who market their deals. Furthermore, improvements in handling complaints from small businesses will be required.

Commenting on the proposals, Neil Lawrence, a director at Ofgem, emphasized the need for better support and easier access to suppliers during times of struggle. He acknowledged that many customers are being underserved and deserve a more efficient and reliable customer service experience.

However, some critics argue that the proposed regulations are coming too late for many businesses that have already suffered from inflated energy bills and poor service. Emma McClarkin, the chief executive of the British Beer and Pub Association, states that delays in action have cost businesses millions of pounds and caused unnecessary stress. She calls for quick implementation of the recommendations to ensure that such behavior is not repeated and that the hospitality sector is not unfairly labeled as high-risk.

In addition to these proposals, Ofgem offers a newsletter promoting Business Today, which provides daily business news and analysis. Subscribing to this newsletter ensures access to relevant information, although readers should be aware that it may contain content funded by external parties. The collection of personal data is subject to the Privacy Policy, including the use of Google reCaptcha to protect the website.

Damon Parker, a senior partner at the law firm Harcus Parker, welcomes the plan to disclose secret broker commissions, which his firm is currently seeking to reclaim through a £2 billion class action. Parker believes that in regulated sectors, it is common practice for third-party payments to be clearly disclosed. While acknowledging that Ofgem should have taken action earlier, he still considers this a positive development for business customers.

The Federation of Small Businesses (FSB) supports Ofgem’s plans and had previously called for companies to renegotiate contracts signed during a period of high market prices last year. Tina McKenzie, the policy chair of the FSB, welcomes Ofgem’s backing and urges energy suppliers to act with fairness and adapt to the changing needs of their customers.

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