Customer service standards for retailers tightened

Energy suppliers will soon be required to display their Citizens Advice star rating as part of Ofgem’s bid to tighten up customer service standards.

The energy regulator has outlined a series of measures which it believes will improve service and help customers who are struggling to pay their bills.

From 14 December suppliers will be obligated to contact customers who miss two monthly or one quarterly payment to check if they are struggling with bills and, if so, offer support such as affordable payment plans or potentially repayment holidays.

Ofgem said that as a first step, suppliers will need to publish the Citizens Advice ratings “in a prominent location and format” that is easily accessible for all customers. These ratings include for call wait times and quality of responses.

The regulator also confirmed it will begin work with the sector to develop new measures of customer service with a view to publishing these next year.

Ofgem said its new standards, which have been developed following a statutory consultation published in July, are designed to make it easier for customers to contact their suppliers, ensure struggling households are supported and improve overall customer satisfaction.

Introducing these new rules into supplier license conditions, it added, means it will be easier for the regulator to act where there is evidence of suppliers failing to meet these requirements.

Other requirements for retailers include:

• Be available via different contact methods and at times that meet customer needs;
• Prioritise vulnerable customers or those calling on their behalf and offer free contact methods for people struggling to pay their bills;
• Offer debt repayment plans at the earliest opportunity and consider offering temporary debt repayment holidays, where appropriate

The regulator’s chief executive Jonathan Brearley will discuss customer service standards in his speech to the Energy UK conference later today (18 October).

He is expected to say: “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.

“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.”

Meanwhile, the regulator said it will explore “the development of a new measure of customer experience that will ensure suppliers continuously drive improvements in overall customer service”.

To this end it will engage with suppliers, Citizens Advice and other stakeholders to begin this process over the next year.

Elsewhere Ofgem has confirmed that it will soon launch a call for input regarding standing charges, asking consumers, charities, suppliers, and customer representatives for feedback.

Responding to the news 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.”

These issues will be discussed in more detail at Utility Week‘s Consumer Vulnerability and Debt conference taking place in Birmingham this November. For more information and to book your place, click here.