Energy firms’ customer service has received strong criticism from regulator Ofgem, which argues that consumers deserve better and calls for reform in the market. Ofgem states that it has become increasingly challenging for customers to reach someone at their energy company, despite some positive examples. The regulator highlights issues such as long call waiting times and the difficulty of speaking to energy company staff. This comes in the wake of Ovo, one of the largest energy firms, facing backlash from 200 customers for allegedly inaccurate billing.
According to Ofgem, 33% of households are dissatisfied with the customer service provided by energy firms, up from 26% in 2018. As a solution, Ofgem suggests that energy firms should extend their contact hours, potentially operating 24/7 for customers experiencing power or gas outages. Currently, many energy firms are only available during normal office hours, when most customers are at work. Ofgem also urges suppliers to identify and assist vulnerable customers in need of immediate help. Additionally, the regulator recommends that energy firms offer struggling customers repayment plans early on, including repayment holidays for households facing severe financial difficulties.
Ofgem acknowledges that competition among energy firms has not improved customer service and warns that it may intervene if improvements are not seen. The regulator has already criticized energy firms for long call waiting times, which result in frustrated customers hanging up.
Charity National Energy Action estimates that customers waste approximately £10 million worth of time each year waiting on hold to energy firms, often just to pay their bills. Despite its expectations that energy firms address call waiting times promptly, Ofgem will not take further action beyond its current powers to order compensation for excessive wait times.
Ofgem is currently seeking feedback on its proposed changes, allowing anyone, including consumers, to respond. Neil Lawrence, director at Ofgem, emphasizes the need for suppliers to better support their customers, stating that customers should be able to contact their supplier without frustration or delay when in need of assistance.
Myron Jobson, senior personal finance analyst at stockbroker Interactive Investor, welcomes the new rules requiring suppliers to offer more effective support to customers struggling with bills, including early intervention to identify and provide support such as temporary repayment holidays for those unable to pay.
Energy UK, the energy trade body, acknowledges the difficulties customers will face this winter and highlights the efforts made by suppliers to provide support during the energy crisis. However, Energy UK emphasizes that while high standards are crucial, solving the affordability crisis requires government support for customers’ bills this winter.
For customers who face difficulty resolving complaints with their energy company, they can escalate the issue to the Energy Ombudsman. The Energy Ombudsman offers a free service to handle customer grievances regarding customer service, billing, switching suppliers, and more. Prior to lodging a complaint with the Energy Ombudsman, customers must first raise a formal complaint with their supplier. If no response is received within eight weeks or if it has been eight weeks since the final decision was given, customers can turn to the Energy Ombudsman for further assistance. While the process can be time-consuming, customers have the option to appeal if they believe the Ombudsman’s decision is unfair.
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