Ofgem unveils plans for overhaul of energy customer service standards

Energy regulator Ofgem has set out proposals for a major update to its regulatory framework with plans to streamline overly prescriptive rules, enhance customer satisfaction, and empower suppliers to deliver better outcomes for consumers.

Ofgem is considering ‘outcomes-based regulation’. This approach prioritises the quality of the final outcome for all customers - whether domestic or non-domestic. Suppliers will be expected to ensure that every customer interaction leads to a positive result.

Outcomes-based regulation sets broad goals for what should be achieved, rather than prescribing exactly how to achieve them. This approach gives suppliers more flexibility while ensuring key standards and results are met.

Examples of what good outcomes could look like include suppliers investigating and resolving complaints fairly, promptly, and through channels that suit the customer. Another is customers having confidence that, regardless of how their energy is supplied or who is involved, the service and technology will work reliably and efficiently.

The regulator’s objective is to ensure a simpler regulatory framework that continues to drive improvements in consumer standards. It is acting on feedback from suppliers and consumer groups that regulation has become too complicated - citing a growing volume of rules and overly prescriptive requirements that limit flexibility and innovation.

Tim Jarvis, Director General, Markets at Ofgem said: 

“Average customer satisfaction in the energy sector is at a record high. But maintaining momentum and ensuring standards are high across the market is crucial as the system evolves toward clean, homegrown energy.

"We need to ensure our regulatory framework is fit for the future – one that embraces competition, enables innovation, and supports growth while protecting consumers. 

“By working with the industry and consumer groups on our plans to introduce greater use of outcomes-based regulation and explore more effective Guaranteed Standards of Performance, we aim to drive innovation and deliver consistently better results for energy consumers.

“Our goal is to strike the right balance: protecting consumers while reducing the regulatory burden on suppliers.”

As part of this, Ofgem is also carrying out its largest review of the supplier Guaranteed Standards of Performance (Guaranteed Standards) to date. These set minimum standards of performance that all suppliers must meet for specific services. If they fail to do so, they must pay £40 automatic compensation to affected consumers.

Guaranteed Standards have not been fully reviewed since 2015. Since then, the energy market has changed significantly, and Ofgem is considering whether updates are needed to ensure they reflect the evolving energy system.

Ofgem is also identifying areas where the Guaranteed Standards may be more appropriate or effective than prescriptive supply licence conditions.

This work is the next step in Ofgem’s Consumer Confidence Programme, which sets out the regulator’s vision to deliver five-star customer service and improve public trust in the sector.

Through its research and engagement with the energy industry, Ofgem has identified opportunities to build on recent improvements in the energy market and ensure all customers receive the highest standards of service. 

Ofgem aims to have a clear and simple regulatory framework that achieves the best possible outcomes for energy consumers and is now seeking feedback from the industry on its proposals.

Notes to editors

• We are also today publishing two separate Call for Input consultations. This includes the proposed Consumer Outcomes we have developed with consumers and energy sector stakeholders, alongside the Guaranteed Standards review. The deadline for responses is Thursday 22 January 2026, and we will accept joint submission to both consultations.
• As shown in our recent State of the Market Report, domestic complaint volumes have reached their lowest levels since 2022 and recent evidence from July and August 2025 shows welcome improvements in average domestic consumer overall and customer service satisfaction, reaching all-time highs of 82% and 76% respectively since we started tracking them.
• For more information on the overarching Consumer Confidence Programme, see Consumer confidence: a step up in standards.