Responding to DESNZ’ announcement on complaints reform and broker regulation, Energy UK’s Deputy Director (Customers) Ned Hammond said:
“Customer satisfaction with energy suppliers is at its highest ever level, according to Ofgem and Citizens Advice, and complaints to the Ombudsman fell by a quarter in the first half of the year, so both the timing and the rationale for these changes are surprising.
“It’s absolutely right that customers have effective redress when things go wrong but it should be the suppliers that are the primary route for resolving complaints successfully. As well as threatening to add unnecessary extra costs, changes such as reducing the length of time for references or automatic referrals to the Ombudsman, threaten to undermine that important principle and in turn, customer confidence in their supplier.
“Customers’ interests would be better served by building on the evident recent improvements suppliers have made and by the Ombudsman working with the industry, Ofgem and consumer groups like Citizens Advice to reduce the causes of complaints further and continue to improve how suppliers handle them.
“Our industry has long called for regulation of energy brokers. In a sector that is closely regulated, the extensive use of brokers by businesses and other non-domestic customers means they should be subject to a similar level of oversight.”