“Fairer, faster redress in the energy market”

The Department of Energy and Net Zero (DESNZ) has published its consultation to introduce stronger protections and consumer rights for families and businesses when things go wrong in the energy market. Fairer, faster redress in the energy market - GOV.UK

This is another significant step forward in strengthening consumer protections within the energy sector. The proposals relating to Energy Ombudsman are a clear move towards fairer and more accessible redress for energy consumers. They include:

1. 8 weeks to 4 weeks: making the process quicker for consumers by reducing the window before complaints can be escalated to Energy Ombudsman
2. Auto Referral: exploring how to make referral more automatic to reduce the burden on consumers
3. Compensation: giving Energy Ombudsman powers to require suppliers to compensate consumers where a remedy has not been implemented on time
4. Strengthening Powers: strengthen the standing of Energy Ombudsman by designating it in legislation and giving statutory weight to our decisions.

Commenting, Ed Dodman, Chief Ombudsman for Energy Ombudsman, said:

“Having worked closely with DESNZ and Ofgem, we welcome the launch of this consultation which aims to create a faster, fairer and more accessible redress system for everyone.

“Currently, around two-thirds of consumers who could use Energy Ombudsman do not do so, and factors such as complexity and accessibility contribute to this low engagement. Proposals to reduce the complaint escalation period from eight weeks to four weeks, alongside automatic referral to our service, will ease the burden on consumers and improve access. The sector should hold itself to the highest standard to ensure we are doing the right thing for consumers, and these measures will ensure that everyone who could benefit from using Energy Ombudsman has the same opportunity to do so.

“In addition, the proposals to strengthen our power and apply compensation when suppliers don’t implement remedies on time, will provide reassurance to consumers and help to build trust in the sector.”

Energy Ombudsman is part of Trust Alliance Group, Group CEO, Simon Palmer added:

“The overall ambition to improve access to redress for consumers in the energy sector has been really encouraging, and it is a significant step forward to have it set out in the consultation published by DESNZ. Trust Alliance Group is continuing to develop its capabilities to ensure that Energy Ombudsman meets the needs of all its stakeholders and fulfils our purpose of building trust between consumers and suppliers. This process should ensure that all consumers, especially those less likely to use our service, have better access to redress for energy related disputes, ensuring it’s fair for everyone.”