Households could be set for more compensation from energy suppliers who dip below standards, the regulator announced.
Ofgem has published a consultation with the intention of increasing the money energy customers can claim from energy firms to £40.
This will be the case if your energy supplier fails to meet the ‘guaranteed standards of performance’ set out by the regulator.
As it stands, firms that do not keep to their appointment times, replace credit correctly or amend prepayment meter faults have to pay out £30 as a refund. This is also the case if switching suppliers takes longer than five days.
The current payment structure has been in place since 2015, during which time energy bills have skyrocketed amid the cost-of-living crisis. This move would bring the payment to homes in line with inflation.
As well as changes to the compensation customers can claim back from energy firms, a major energy price cap reform has been mooted in a set of proposals from Ofgem.
The plans could mean that billing will be based on the time of day households use their energy, and this comes after the energy price cap fell to £1,690 from £1,928 in April.
Further changes could also include a targeted cap for vulnerable customers.
‘Things go wrong from time to time’
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.”
You are entitled to compensation if your energy supplier falls below the following standards:
- 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 five working days
- Avoiding, investigating and reversing any erroneous transfer of a customer to a new supplier
- Provision of a final bill within six weeks of a customer switching suppliers
- Refund of a customer’s outstanding credit balance within 10 working days of providing a final bill to a switched customer
