The power regulator has printed a collection of proposals that, it hopes, will present larger protections for households and companies in time for the approaching winter when fuel and electrical energy costs peak.
Ofgem mentioned it was responding to complaints about poor customer support requirements by means of deliberate new guidelines to make sure households can contact suppliers and get help if they’re struggling to pay.
In the wake of final yr’s collapse of a number of suppliers when uncooked power costs surged as a result of warfare in Ukraine, suppliers will face a minimal capital requirement to enhance their resilience to market shocks.
Ofgem mentioned that was a component of its plans to make sure that “consumers benefit from a stable energy market”.
It builds on new guidelines introduced in final November to bolster enterprise fashions.
It was additionally to press forward with measures to make sure households’ credit score balances are higher protected.
The regulator mentioned it needed the ability to order suppliers to ringfence a portion of these holdings.
For non-household clients, together with companies, Ofgem mentioned it was to look at dealer practices amid strategies that vast commissions are being loaded onto payments.
Energy payments for companies have proved slower to return down after the spikes witnessed since final summer season on the again of unprecedented wholesale fuel prices.
Households are again on the power worth cap following the tip of the federal government’s power worth assure which restricted the quantity that clients may very well be charged per unit.
Market forecasts see annual payments hovering across the present £2,000 per yr degree – nicely down on the peaks they might have endured however for the taxpayer assist however nonetheless round £1000 up on the pre-pandemic common.
The business regulator mentioned it was clear that suppliers should do higher of their help of customers – with strains of communication being broadened and open for longer together with at weekends.
It was additionally in search of more practical help for purchasers fighting payments, together with early intervention to “identify and offer support such as temporary repayment holidays when consumers are unable to pay”.
Its director, Neil Lawrence, added: “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 support is necessary for all customers, however it could actually make a vital distinction to the welfare and the protection of essentially the most susceptible.
“While we have seen good practice from some suppliers, we expect every company to raise the bar to provide a consistent service that customers can rely on – and this mission should be driven from the top.
“We imagine these suggestions could make a constructive distinction to customers and we intention to have modifications in place earlier than the chilly winter months return.”
Read extra:
NatWest boss resigns over Nigel Farage checking account leak
Lloyds takes £700m dangerous mortgage cost as charge squeeze intensifies
The prospect of extra assist for companies was welcomed by curiosity teams, particularly these hit hardest by rising power prices.
UKHospitality chief govt Kate Nicholls mentioned: “UKHospitality has continued to raise the reckless behaviour of some energy suppliers with government, with some offering rates well above wholesale prices, hiking standing charges, demanding eye-watering deposits, and, in some cases, refusing to work with hospitality companies.
“A current member survey reveals that power prices are up 80% year-on-year and virtually half of companies who signed a contract on the peak of the power disaster fearing their enterprise is prone to failure.
“Whilst it has been a long time coming, it is reassuring to see that Ofgem is now doing what it can to support the hospitality sector.”
Source: information.sky.com”