Disputes with Suppliers
How to resolve disputes with your energy supplier
Under new arrangements that came into effect on 01.10.2008, energy suppliers have committed to keep to a new and stringent set of complaint handling standards set by energy regulator ofgem. If they fail to do so they face the prospect of heavy fines.
Suppliers have a set time limit during which they will resolve the complaint. The time limit is currently eight weeks for the six major suppliers and 12 weeks for smaller suppliers.
The new standards provide an improved level of service for consumers. Examples of these are:
- Consumers will no longer have to repeat all the details of the complaint if they need to contact the supplier again.
- Suppliers will no longer insist that complaints are put in writing before they can be considered
- Companies will publish information on the number of complaints they receive. This will enable consumers to judge which companies provide the best service.
- Companies will be audited on how they handle complaints and comply with the new standards. They could be fined up to 10 per cent of turnover if they do not meet the standards. Ofgem now audit companies to ensure they are meeting these obligations and to promote further improvements.
If a point is reached where a supplier says it can do no more to resolve the complaint and the consumer is still not satisfied or the time limit has expired, the consumer can move on to seek redress via the Energy Ombudsman.
Energy Ombudsman (EO)
The Energy Ombudsman (EO) is an independent body which resolves outstanding domestic supply disputes in a fair and consistent manner. The EO is a free service and can deal with complaints about energy companies that are involved in providing gas and/or electricity to your home or small business. This will include complaints about bills for gas and electricity usage, energy supplier's sales activity, problems when changing supplier, issues surrounding power cuts and connection charges.
The Ombudsman will consider whether the supplier must take any action to put things right for you, the customer. If the Ombudsman decides to make an award, and it is accepted by you, the supplier must keep to the decision.
The Ombudsman may ask the supplier to provide any or all of the following:
- A service or some practical action that will benefit you.
- An apology or explanation.
- A financial award.
When deciding upon an award it is not the Ombudsman's role to punish suppliers and if a financial award is required, this will be the amount the EO considers to be the right amount to settle a particular dispute. A maximum limit of £5000 (including VAT) is placed on the award.
So that the same problem is less likely to happen again, the Ombudsman may also recommend that an energy supplier makes changes to its policies or procedures.
If an energy company is unable to resolve a complaint they should issue a deadlock letter which will allow the consumer to take their case to the Ombudsman. A consumer can also approach the Ombudsman if their complaint has not been resolved within 8 weeks (or 12 weeks for companies that have recently joined the scheme).
Contact details for the EO are as follow:
Energy Ombudsman
PO Box 966
Warrington
WA4 9DF
Tel.: 0845 055 0760, or 01925 530263
Fax: 0845 055 0765, or 01925 530264
Textphone: 0845 051 1513, or 01925 430886
Their telephone lines are open Monday to Friday, 9am to 5pm.