Ofgem unveils plans for overhaul of energy customer service standards
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Ofgem is exploring regulatory
reforms to streamline the rulebook and
create a more agile energy sector With customer service at
record highs, the regulator is considering new
ways to build on this success and
improve protections This new approach aims
to unlock investment, boost innovation, and
simplify the energy system for suppliers and
consumers alike. ...Request free
trial
Energy regulator Ofgem has set out proposals for a major update to its regulatory framework with plans to streamline overly prescriptive rules, enhance customer satisfaction, and empower suppliers to deliver better outcomes for consumers. Ofgem is considering ‘outcomes-based regulation'. This approach prioritises the quality of the final outcome for all customers - whether domestic or non-domestic. Suppliers will be expected to ensure that every customer interaction leads to a positive result. Outcomes-based regulation sets broad goals for what should be achieved, rather than prescribing exactly how to achieve them. This approach gives suppliers more flexibility while ensuring key standards and results are met. Examples of what good outcomes could look like include suppliers investigating and resolving complaints fairly, promptly, and through channels that suit the customer. Another is customers having confidence that, regardless of how their energy is supplied or who is involved, the service and technology will work reliably and efficiently. The regulator's objective is to ensure a simpler regulatory framework that continues to drive improvements in consumer standards. It is acting on feedback from suppliers and consumer groups that regulation has become too complicated - citing a growing volume of rules and overly prescriptive requirements that limit flexibility and innovation. Tim Jarvis, Director General, Markets at Ofgem said: “Average customer satisfaction in the energy sector is at a record high. But maintaining momentum and ensuring standards are high across the market is crucial as the system evolves toward clean, homegrown energy. "We need to ensure our regulatory framework is fit for the future – one that embraces competition, enables innovation, and supports growth while protecting consumers. “By working with the industry and consumer groups on our plans to introduce greater use of outcomes-based regulation and explore more effective Guaranteed Standards of Performance, we aim to drive innovation and deliver consistently better results for energy consumers. “Our goal is to strike the right balance: protecting consumers while reducing the regulatory burden on suppliers.” As part of this, Ofgem is also carrying out its largest review of the supplier Guaranteed Standards of Performance (Guaranteed Standards) to date. These set minimum standards of performance that all suppliers must meet for specific services. If they fail to do so, they must pay £40 automatic compensation to affected consumers. Guaranteed Standards have not been fully reviewed since 2015. Since then, the energy market has changed significantly, and Ofgem is considering whether updates are needed to ensure they reflect the evolving energy system. Ofgem is also identifying areas where the Guaranteed Standards may be more appropriate or effective than prescriptive supply licence conditions. This work is the next step in Ofgem's Consumer Confidence Programme, which sets out the regulator's vision to deliver five-star customer service and improve public trust in the sector. Through its research and engagement with the energy industry, Ofgem has identified opportunities to build on recent improvements in the energy market and ensure all customers receive the highest standards of service. Ofgem aims to have a clear and simple regulatory framework that achieves the best possible outcomes for energy consumers and is now seeking feedback from the industry on its proposals. Contact Information
Ofgem Media Team Notes to editors
Further Information General enquiries (non-media) If you are an energy customer looking for help and advice, including complaints about energy firms, please see our Household gas and electricity guide. Citizens Advice also provide a free, impartial helpline service across a range of issues on 0808 223 1133. We also regularly share news and post general advice to help consumers get the most out of their energy services via our @Ofgem twitter and Facebook pages. If you have an enquiry or complaint relating to Ofgem's policies or functions, contact us at consumeraffairs@ofgem.gov.uk or on 020 7901 7295. For all other non-media related enquiries, please visit our Contact us page. About Ofgem Ofgem is Britain's independent energy regulator. Our role is to protect consumers now and in the future by working to deliver a greener, fairer energy system. We do this by:
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