A consultation published by
Ofgem today, will set out a proposal to increase compensation
payments suppliers must pay customers if they fail to meet the
Guaranteed Standards of Performance (GSoP) from £30 to £40.
Suppliers are required to pay £30 to consumers if they fail to
meet the minimum standards outlined in the regulations, which
includes making and keeping appointments, investigating and
fixing/replacing credit or prepayment meter faults, and switching
supplier within five working days.
The current Guaranteed Standards of Performance were introduced
in 2015, with the £30 payment level set at the same time. We
added further standards in relation to switching suppliers in
2019 and 2020. A £10 increase will bring the payment in line with
inflation since it was last set, and ensure customers continue to
be fairly compensated when their supplier fails to meet the
minimum standards set out in regulations.
Beth Martin, Director of Consumer Protection and
Competition at Ofgem, said:
“We're working hard to drive up standards in the energy sector,
and have introduced a series of reforms to make sure energy
companies are doing everything they can to support their
customers.
“The guaranteed standards of performance were brought in to make
sure consumers get the service they deserve from their energy
supplier, but we know things do go wrong from time to time. When
that happens, consumers should be compensated fairly.
“With the cost of living increasing across the board, it's right
that we look again at the payment level to make sure this
reflects inflation. "
This consultation follows a series of reforms from Ofgem to
improve customer service standards in the energy sector,
including the introduction of faster
compensation payments when a supplier fails to complete a
customer switch, which came into force last month.
The regulator also introduced a number of new rules
last December, including the requirement to prioritise enquiries
from vulnerable customers, and proactively offer support to those
who may be struggling to make payments.
Last year the regulator ordered three suppliers, E.On Next, Good
Energy and Octopus Energy, to pay a total of £8million
in compensation and redress after failing to meet the GSoP
related to billing, and timely compensation payments.
ENDS
NOTES TO EDITORS
For more information on previous enforcement action taken in
relation to the GSoP visit: Three suppliers pay total
of £8 million in relation to 'Guaranteed Standards of
Performance' Final Billing Compensation failures |
Ofgem
The full list of minimum standards suppliers must meet, or pay
compensation if they do not, under the GSoP include:
- Making and keeping appointments for home/microbusiness
visits;
- Investigating and fixing/replacing faulty credit
meters;
- Investigating and fixing/replacing faulty prepayment
meters;
- Reconnection following a disconnection due to
debt;
- Completing a customer's switch to a new supplier within 5
working days;
- Avoiding, investigating and reversing any erroneous transfer
of a customer to a new supplier;
- Provision of a final bill within 6 weeks of a customer
switching supplier; and
- Refund of a customer's outstanding credit balance within 10
working days of providing a final bill to switched
customer.
