Simplifying the rule book to help suppliers focus more on the
things that matter most to their customers is at the heart of new
plans by Ofgem to revise the way it regulates the energy
market.
The Consumer Outcomes consultation,
published today, sets out a mission to improve the everyday
experience of energy consumers
from better billing
accuracy, to quicker complaint
resolution and appropriate support when
struggling with debt.
To help suppliers drive forward improvements on these key issues,
the regulator intends
to streamline the detailed process-based rules it currently requires energy
companies to follow. Instead, Ofgem
will monitor real-life customer
experience to assess each supplier's
performance, retaining detailed process rules only
where needed.
Neil Kenward, Director General, Markets, for Ofgem
said:
We want to ensure the energy retail market delivers the
outcomes that matter most to consumers. To do this we need
to simplify
our regulatory approach moving away from
prescriptive process-based regulation
to a focus on the real-life experience and
outcomes of energy customers.
Fair pricing, support when struggling with debt and
confidence that their complaints will be taken seriously and
resolved quickly are at the top of consumer priorities. By
focusing on consumer outcomes rather than prescriptive rules, we
will give suppliers the space to find new
ways to meet those needs and provide a world class standard of
customer service.
This transition from tick-box regulation to judging
suppliers on tangible results and better customer
service, reflects Ofgem's determination to evolve
and match the pace of change in a rapidly developing,
technologydriven market.
Under the proposals in the Consumer Outcomes package, the
regulator aims to:
- Cut complexity and make the rules clearer
so that everyone understands what good outcomes look
like in practice.
- Compel energy suppliers to focus on
the end customer experience, rather than following
detailed process-based rules.
- Encourage suppliers to innovate, giving them
more freedom to try fresh ideas and develop
new ways to ensure their customers receive the best possible
experience and promote growth and investment
in the energy market.
Combined with enhanced monitoring of supplier
performance, Ofgem will be better placed to assess consumer
experience and respond at
pace to emerging problems.
The Consumer Outcomes consultation is open
until 22 July and the regulator welcomes input
from all sources including industry, consumer
groups and charities, political engagement and energy
customers.
