Energy firms are set to be forced to fix issues including overcharging and faulty smart meters in just six weeks under new government measures. Ministers are taking action to hold the retrofit industry accountable for delivering home upgrades through a new consumer protection service.
Faster compensation and ombudsman powers
Households are to receive fairer and faster compensation in the energy market under new measures to strengthen the Energy Ombudsman, which helps people resolve disputes with their energy suppliers. If companies cannot resolve issues directly, customers will be able to escalate complaints to the Ombudsman within a shorter timeframe, receiving a decision more quickly – cutting overall waiting times by a month to a maximum of 10 weeks.
The Ombudsman will be empowered to fine companies if they do not comply with rulings, with new measures clarifying the route for consumers to go through the courts to hold suppliers to account as a last resort.
Government and industry reaction
Labour Party Minister for Energy Consumers Martin McCluskey said: "This government inherited a broken system that left too many people in homes damaged by work that lacked clear oversight, without support when things went wrong. That is why we promised to change that system and today we are setting out how we propose to do that. We are building a system that puts consumers first – holding companies to account while introducing better compensation and protections for customers."
Gillian Cooper, Director of Energy at Citizens Advice and Retrofit System Reform Advisory Panel member, said: "We welcome the commitment to right-first-time installations and a simpler customer journey. Providing routes to impartial advice and redress where needed will give consumers confidence to adopt vital retrofit measures."
Brian Berry, Chief Executive of the Federation of Master Builders and Retrofit System Reform Advisory Panel member, added: "The retrofit market is a confusing landscape for both consumers and trades. The government’s proposals to improve consumer protection are a welcome step forward, most notably the consideration to make more trades and related occupations subject to more government oversight. Greater oversight will offer the best protection to consumers and help drive out incompetent installers."
