The total number of complaints by domestic energy consumers fell by 32 per cent last year according to data published jointly by Ofgem and the Energy Ombudsman today.
The total number of complaints dropped from around 5 million in 2015 to 3.5 million complaints in 2016 - the lowest point in three years.
Most large and medium suppliers solved on average at least 90 per cent of complaints within 8 weeks, the deadline after which complaints may be referred by individuals to the Energy Ombudsman.
Ofgem publishes complaints data quarterly on its website, including the number of complaints suppliers receive and the time it takes to resolve them.
Data released by the Ombudsman today reveals that between January to December 2016, it required suppliers to ‘hand back’ £3.3m through financial awards it made through case remedies.
At the same time the Energy Ombudsman is taking action to drive up standards amongst suppliers. In May 2015 the Energy Ombudsman introduced new requirements that mean failure to implement remedies within 28 days are met by tougher penalties. This has led to a reduction in the time that consumers are waiting for their awards to be implemented.
Ofgem CEO Dermot Nolan comments: “Ofgem welcomes the overall fall in complaints since 2014.
“We are seeing clear signs that some suppliers are competing harder on customer service. This is good, as it puts pressure on poor-performing companies to up their game or lose market share.
“We want to see all suppliers to take steps to bring down complaints further. We take strict action where we see companies failing and have imposed over £50 million penalties for companies for poor customer service.”
Chief Ombudsman, Lewis Shand Smith, commented: “The steady decrease in the volume of complaints over the last year is encouraging for the energy industry as it indicates that providers are improving their service and complaints handling. At the same time consumers are rightly more demanding of their energy suppliers than ever before, taking service as well as cost into account. Having easy access to the data we are publishing today gives consumers the power to make informed decisions about their energy provision.
“It’s clear that energy companies’ steps to improve their customer service are starting to pay off, but there is still more that could be done to ensure the service customers receive matches their expectations.”
Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.
For facts, figures and information about Ofgem’s work, see Energy facts and figures or visit the Ofgem Data Portal.
Follow us on Twitter @ofgem and LinkedIn
For further information, contact:
Ruth Somerville: 0207 901 7460
Media out of hours mobile: 07766 511 470 (media calls only)