Energy firms to contact customers missing payments in service standards crackdow

18 October 2023 , 13:48

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If customers miss two monthly or one quarterly payment, companies must check if they're struggling to pay. (Image: PA Archive/PA Images)

Energy firms have been told to prioritise vulnerable customers and get in touch with those who miss payments, as part of a new set of customer service standards by regulator Ofgem.

The rules, which kick in from December 14, mean that if customers miss two monthly or one quarterly payment, companies must check if they're struggling with bills and offer help like affordable payment plans or repayment holidays.

Companies will also need to show their Citizens Advice customer service rating so consumers can compare them on things like call waiting times and the quality of their help. These new standards, created after a consultation this summer, aim to make it easier for customers to contact their suppliers, ensure struggling households are supported and improve overall customer satisfaction.

Speaking at the Energy UK conference on Wednesday, Ofgem boss Jonathan Brearley warned suppliers that the regulator won't hesitate to take action. He pointed to recent examples of firms having to pay out millions for poor customer service like long call waiting times and dropped calls. Mr Brearley said: "With recent global events increasing pressure on gas prices, it's likely that bills will rise further."

"This is why the industry needs to do all it can to ensure good customer services and provide help with managing debt, especially for the most vulnerable."

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"In the last year, we have seen some good examples of suppliers stepping up their support for customers. However, despite this, the feeling of those on the frontline working with vulnerable households is that more still needs to be done."

"Long wait times to speak to someone on the phone; letters not replied to; lack of empathy for people's personal circumstances. This needs to change, and today we are setting out our expectations of suppliers this winter, and how they will be held to account to ensure consumers can get hold of them more easily."

"In particular for vulnerable customers, we expect more proactivity and a more sympathetic response."

Gillian Cooper, head of energy policy at Citizens Advice, said: "Aggressive debt collection by energy suppliers can make a difficult situation so much worse for struggling households. In an era of high energy prices and record energy debts, treating customers fairly is more important than ever. Any firm letting its customers down should rightly expect enforcement action."

"Ofgem is also right to make sure struggling customers can easily contact their supplier. Poor performance here will be reflected in our star rating which all suppliers will now be required to publish."

"If you have energy debt it's important to speak to your supplier as soon as possible."

Simon Francis, coordinator of the End Fuel Poverty Coalition, stated: "It's not enough for energy firms to just pick up the phone to customers struggling with their bills. With soaring energy debt levels, people need to have their concerns dealt with efficiently and in a sympathetic manner."

"We hope that as the new guidance is implemented, Ofgem will expand the measures it uses to assess energy firms' performance. As well as 'contact ease' being measured and published, the regulator should also consider 'contact success' and 'contact empathy' as measures of performance for energy firms."

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Steve Charnock