MILLIONS of energy customers are set to benefit from new rules announced today including repayment holidays and 24/7 support.
The watchdog Ofgem has revealed a raft of proposals to reform the UK power market.
GettyOfgem has announced a raft of proposals which will benefit energy customers[/caption]
It comes after Ofgem found there had been a decline in customer service satisfaction levels with energy suppliers since 2018.
Under the proposals, firms will have to offer customers struggling to pay bills payment holidays.
Companies will also have to provide 24/7 emergency support for customers cut off from their power or gas supply due to issues such as meter faults.
The full list of proposals includes:
requiring supplier customer service lines to stay open longer, including evenings and weekendsrequiring suppliers to offer a greater variety of contact methods such as email and web chatoffering more support for customers struggling with bills, including early intervention to identify and offer support such as temporary repayment holidays when customers can’t payprioritising customers in vulnerable situationsmaking 24/7 emergency support available for customers who are cut off from their power or gas supply due to issues with their supplier (e.g. meter faults)asking suppliers to make information on customer service performance better available
Ofgem has also announced a raft of proposals to crackdown on poor energy broker practices for small businesses.
Businesses will have to be kept better informed of how their energy bills are being paid to brokers.
They will also be able to resolve disputes with brokers through a new scheme.
Plus, the regulator has also announced suppliers will have to ensure they are financially resilient enough to take any hits from market shocks.
The new rules will take effect from March 31, 2025 and ensure companies have enough capital to cushion them from wholesale energy price increases.
It comes after 30 suppliers failed in 2021 due to a surge in wholesale electricity and gas prices.
Ofgem is also pushing forward with proposals to have the power to direct suppliers to ringfence a portion of their customer credit balances “when it is deemed to be in the consumer interest”.
Neil Lawrence, director at Ofgem, said: “Suppliers are short-changing too many of their customers, who deserve better.
“Customers need more support when they are struggling and should be able to contact their supplier without frustration or undue delay when they need help.
“The plans we are announcing put the welfare of business and domestic consumers first and set out a comprehensive package to tackle poor behaviour by energy suppliers.”
What help you can get with energy bills
Millions of households are being issued with cost of living payments to cover essentials such as energy bills and food.
The £900 payment has been split into three instalments worth £301, £300 and £299.
The first was already paid across April and May, with the second due in autumn and the third in Spring 2024.
You are eligible for the payment if you receive the following benefits on certain dates:
income-based Jobseeker’s Allowance (JSA)income-related Employment and Support Allowance (ESA)Income SupportPension CreditUniversal CreditChild Tax CreditWorking Tax Credit
Millions of pensioners are set for a £150-£300 top up on their Winter Fuel Payment from November this year as well.
You’ll be eligible for the boost if you qualify for this year’s Winter Fuel Payment.
You are eligible for this if you were born before September 25, 1957.
Meanwhile, a number of energy suppliers offer customers grants if they are struggling to pay their bills.
This includes British Gas, EDF, Scottish Power and Octopus Energy.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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