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New energy rules: What they mean for you

Emma Lunn
Written By:
Emma Lunn
Posted:
Updated:
27/11/2023

Ofgem has announced new rules to improve customer service for homes and businesses.

The energy regulator’s proposals will ensure customers have better access to support and will make electricity firms more financially secure.

For households, the proposals include requiring energy supplier enquiry lines to stay open longer, including evenings and weekends, and be easier to contact via multiple methods such as email, webchat or other digital-based platforms.

The rules will also enable more effective support for customers struggling with bills, including early intervention to identify and offer support such as temporary repayment holidays when consumers are unable to pay. Customers in vulnerable situations will be prioritised.

There will be 24/7 emergency support available for customers who are cut off from their power or gas supply due to issues with their supplier, such as meter faults.

Neil Lawrence, director at Ofgem, said: “Suppliers are short-changing too many of their customers, who deserve better.

“Customers need more support when they are struggling and should be able to contact their supplier without frustration or undue delay when they need help.

“The plans we are announcing put the welfare of business and domestic consumers first and set out a comprehensive package to tackle poor behaviour by energy suppliers. Good customer service is important for all consumers, but it can make a critical difference to welfare and the safety of the most vulnerable.”

Myron Jobson, senior personal finance analyst at Interactive Investor, said: “New rules requiring suppliers to offer more effective support for customers struggling with bills, including early intervention to identify and offer support such as temporary repayment holidays when consumers are unable to pay, are welcome.

“When people are struggling to make ends meet, they don’t need additional headaches from their energy providers. They need support, guidance, and a helping hand to navigate through the murky waters of bills and payments. That’s where good customer service comes in, serving as a beacon in the cost-of-living storm. It provides reassurance, a sense of security, and empowers customers to manage their energy usage better.”

Minimum capital requirements

Under the proposals there will also be minimum capital requirements for energy companies – basically, a financial buffer energy firms must hold to make them better able to withstand market disruption.

The new rules, which will take effect from 31 March 2025, will ensure that companies have a level of capital to make them more resilient to any sudden changes in market conditions, such as the price shock in 2021 that prompted the failure of 30 suppliers.

The move follows Ofgem’s open letter to suppliers on 4 July, where chief executive Jonathan Brearley warned that the regulator is ready to act against suppliers that do not yet have sufficient capital if they use profits for paying dividends above recapitalising.


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