Fairer, Faster Redress in the Energy Market
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes to halve complaint escalation times from 8 weeks to 4 weeks, reduce Ombudsman decision timeframes to 4 weeks, and strengthen enforcement powers against suppliers who fail to implement rulings. The consultation covers domestic suppliers, small enterprise complaints, and heat networks but excludes electricity and gas networks. These are process improvements to existing consumer redress mechanisms rather than market structure changes.
Why it matters
This treats symptoms of poor supplier service quality rather than addressing the market conditions that create it. The proposals add oversight and speed to existing complaint processes but do not change the incentive structures that generate complaints in the first place.
Key facts
- •Complaint escalation window reduced from 8 weeks to 4 weeks
- •Ombudsman decision timeframe reduced to 4 weeks
- •New explicit power to require supplier compensation for late implementation
- •Statutory designation proposed for Energy Ombudsman
- •Excludes electricity and gas network complaints
Areas affected
Memo
This consultation seeks stakeholders feedback on our proposals to ensure that consumers have access to faster and fairer redress. This includes proposals to: 1. Make the process quicker for consumers by reducing the window before complaints can be escalated to the Ombudsman from 8 weeks to 4 weeks (with exceptions for complex cases) and reducing the time that the Ombudsman has to consider complaints to 4 weeks 2. Explore how to make referral more automatic to reduce the burden on consumers, including advanced signposting, automatic onboarding of consumer details and proactive outreach 3. Give the Ombudsman an explicit power to require suppliers to compensate consumers where a ruling has not been implemented on time 4. Strengthen the standing of the Energy Ombudsman by designating it in legislation and giving statutory weight to Ombudsman decisions by placing an explicit obligation on suppliers to implement Ombudsman rulings 5. Seek views on how to ensure that the accountability arrangements of the EO are driving continuous improvement The consultation focuses on complaints against domestic energy suppliers, complaints by small enterprises against non-domestic energy suppliers and complaints against heat networks. It will not focus on electricity and gas networks, where there is not evidence of consumer detriment to justify an intervention, nor relation to Third Party Intermediaries (TPIs), which has recently been consulted on separately already. We will be seeking views on our proposals from suppliers, consumer advocacy groups, industry bodies and any other impacted stakeholders, including the general public.