Recommendation 9

HM Government Accepted

2022–23 And Recommendations 10/11 Ofgem and energy companies need to adopt a more proactive culture in improving industry consumer standards. Energy companies should not wait to be enforced to certain standards by Ofgem but should be innovating to improve customer satisfaction and attract more customers. We expect Ofgem to be quicker in challenging energy companies where they are failing to deliver quality customer service. (Paragraph 39) As the independent regulator, Ofgem is responsible for setting and enforcing the rules on supplier requirements and customer standards. However, this is also a topic that the Government is focused on. At a time when Government, Ofgem and energy suppliers are collectively working to build trust and improve the reputation of the sector, it is imperative that all consumers, and especially the most vulnerable, get the best service possible from their energy supplier. This is a message that Ministers have repeated directly to senior executives from leading energy suppliers and Ofgem during a series of recent meetings, and Ministers will continue to support the development of a more proactive culture in improving standards for energy consumers. The Government wants to see energy suppliers responding to the needs of their customers and competing to provide high quality and good value service. Ensuring we have a retail market that works better for consumers is a key aspect of the Government’s new vision for the retail market, as set out in Powering up Britain. Following Ofgem’s recent decision on its consumer standards consultation, Ofgem has announced it will implement new and updated rules to improve ease of contact and support from suppliers from 14 December. These requirements will ensure that this winter: suppliers are available via contact methods that meet customer needs; open at times that meet customer needs; are free for customers that are struggling to pay their energy bills; and prioritise vulnerable customers who need immediate support, or their representatives acting on their behalf. The Government welcomes these new requirements, and in particular their focus on vulnerable consumers. What matters now is that suppliers deliver on these commitments and customers see real improvements. The Government believes that Ofgem should make use of the full range of levers at its disposal to improve customer standards, including by monitoring the market and developing and maintaining processes that allow the direct examination of consumer experiences, as well as using the data it has access to from regulated companies. Last year, Ofgem conducted a series of Market Compliance Reviews (MCRs) to look at energy supplier performance. The MCRs covered a range of supplier activities, such as: setting customer direct debits correctly; supporting customers in payment difficulty or debt; identifying and supporting vulnerable customers; providing good customer service; ensuring senior staff at suppliers are fit and proper; and having adequate control of all the assets suppliers need to operate and deliver for consumers. Suppliers received a separate rating for each MCR. Any suppliers with weaknesses were required to create and implement an improvement plan, which was overseen by Ofgem and in some cases companies were issued with fines. 2022–23 The MCRs demonstrate Ofgem’s commitment to taking a more proactive approach to improving industry consumer standards and the Government will continue to work closely with Ofgem to ensure that suppliers are implementing necessary changes.