Working people will have better protections in the energy market
through a new package of protection measures announced by the
Prime Minister today.
The current system makes it too difficult for consumers to access
proper compensation.
Companies have eight weeks to respond to requests, and if they do
not respond or complaints go unresolved, then the onus is on
consumers themselves to self-refer to the Energy Ombudsman.
This produces a situation in which consumers often do not access
the compensation they are entitled to due to time pressures or
fatigue with a complex system.
These reforms will take the pressure off consumers and onto the
companies to ensure that consumers get the compensation they
deserve. Doing so will ensure energy consumers are
better-protected and empowered to take action when necessary.
These include proposals to make compensation fairer, quicker and
easier, and covers areas including:
- Working with Ofgem to look at expanding automatic
compensation to cover more key issues faced by consumers,
including excessively long call waiting times, unexpectedly high
bills when suppliers fail to adjust direct debits, suppliers not
responding to complaints, or suppliers not complying with Energy
Ombudsman final decisions.
- Government working with Ofgem to look at further increasing
the value of base-level compensation from £40, following the
first increase since the payments were last set a decade ago.
- Strengthening the Energy Ombudsman's powers so that suppliers
must comply with its final decision or pay compensation to the
consumer.
- Cutting the time before complaints can be escalated to the
Ombudsman from eight to four weeks.
- Making referrals to the Ombudsman automatic, instead of
people having to do it themselves.
Minister for Energy Consumers said:
“Through our Plan for Change we are delivering an energy
market consumers can trust, putting an end to unfair practices,
holding suppliers to account, and ensuring that the consumer
always comes first.
“Today's announcement is about taking the next steps –
helping households to get fairer, quicker, easier compensation
when things go wrong.”
This announcement follows confirmation that 2.7 million extra
households will receive £150 off their energy bills this winter
as the Warm Home Discount is expanded – putting more money
directly into people's pockets.
This vital support is the latest in a raft of cost of living
support made possible because the government has stabilised the
economy, fixed the foundations and repaired the public finances –
deliberate choices which are helping provide security and more
money in the pockets of working families through the Plan for
Change.
Since last summer, interest rates have been cut four times,
lowering mortgage costs, free school meals have been rolled out
for over half a million more children so that kids can focus on
learning rather than hungry bellies, free breakfast clubs are
being expanded to every child in the country, school uniform
costs have been cut, and the 30 hours of free childcare scheme
has been extended to more working parents.
Work continues on the government's comprehensive review of Ofgem,
focusing on delivering an energy market where the consumer comes
first.
The review is also considering how Ofgem can better drive the
government's missions for clean power and economic growth.
This includes investigating how the regulator can support the
private sector to invest in energy infrastructure, and ensuring
that families who want to upgrade their homes with clean
technology can do so safe in the knowledge that they are
protected by robust and responsive regulation.
ENDS
Notes to Editors:
