You are here: Home - Household Bills - News -

Network providers may be short-changing customers by over £5bn

Written by:
Energy customers have missed out on an estimated £5.1 million in compensation for poor customer service from network providers over the last 3 years, according to new findings from Citizens Advice.

Payments for problems such as power cuts due to bad weather have taken too long or not been made at all by network providers, who run the energy infrastructure. Citizens Advice found that many domestic and small business customers didn’t claim when networks didn’t meet their obligations, losing out on over £5bn, split evenly between gas and electricity providers. £17.2bn was paid out in network compensation.

The charity said people didn’t claim because they didn’t realise they could, or they forgot, or they didn’t meet the 3-month time limit.

Energy network operators have 39 guaranteed standards of service, set by the regulator Ofgem. These cover response times for reconnection after bad weather, how they handle complaints and emergency procedures. Most providers are doing well meeting the standards required, according to the report.

Citizens Advice called for Ofgem to work towards the implementation of automatic compensation across all standards and for the introduction of financial penalties for poor performance. It added that network providers needed to do more to make people aware f the compensation available.

Gillian Guy, chief executive of Citizens Advice, said: “This money should be in customers’ pockets. We want Ofgem to get tougher with the energy network companies so that customers automatically receive all the compensation they’re entitled to. Guaranteed standards should mean guaranteed compensation. At the very least there should be a system of financial penalties for those energy firms who still don’t proactively pay people what they’re due.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week