Get all your news in one place.
100's of premium titles.
One app.
Start reading
Daily Mirror
Daily Mirror
Business
James Andrews

Tough new rules coming that force energy firms to treat customers properly

Energy regulator Ofgem is changing the rules to make energy firms treat customers better following a string of failures over the past two years.

But the proposals don't stop with the gas and electricity firms in trouble - they're aimed at everyone, in an effort to ensure customers get the service they deserve and are protected in case more companies go bust.

Ofgem's Mary Starks said: "The new proposals will create more accountability in the market, require more responsible and appropriate behaviour from suppliers in the market and reduce the risk and costs to consumers associated with supplier failure.

"In the event a supplier fails, the changes will also strengthen the 'safety net' and improve the experience of customers when they are transferred, so that consumers can be reassured that whatever happens they will be properly protected."

The changes planned

The new rules would let Ofgem request independent audits of suppliers' customer service operations and financial status.

This would include new checks for growing suppliers to make sure they can effectively serve their customers. If they fail the checks, they would be stopped from taking new customers on.

There are also new "fit and proper" requirements for suppliers, to make sure the people in charge are good enough, and a new principle for suppliers to be open and cooperative with the regulator.

The new rules will apply to everyone (Getty)

Suppliers would also need to have plans in place in case they fail, scrutinised by Ofgem.

Richard Neudegg, head of regulation at uSwitch.com , said: "The regulator is focusing on solid measures to ensure good customer service and minimise the risks if an energy company goes out of business."

He added: "The real test of the proposed new rules will come when Ofgem has to enforce them. The whole industry will be watching to see if the regulator's bite is as strong as its bark."

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.