Back to normality for the Energy Sector from July 1st and Ofgem says debt collecting can resume

Ending of relaxed regulations

Energy suppliers need to be aware that the regulations that were eased during the height of the lock down will return to pre-crisis standards from the 1st of next month.

At the peak of the coronavirus outbreak, Ofgem relaxed several standards and regulation to help energy suppliers cope with the crisis. However, as the government continues to ease the lock down this relaxed approach will end.

Suppliers will be expected to offer a high quality of customer service and non-emergency calls will be expected to be answered and dealt with as they were prior to the crisis.

The Smart meter roll out is to continue with suppliers expected to once more demonstrate that they are doing all they can to encourage consumers to have them installed.

Read more: Government announces plans to increase the speed of Smart meter rollout

Many suppliers furloughed staff to reduce costs during the lock down period due to social distancing rules preventing engineers from going into customers’ homes. With the lock downs easing there is now no excuse to keep those staff off work.

No Excuse

Ofgem said that it acknowledges that they may be difficulties for some suppliers going forward but confirmed that the exceptional circumstances of COVID-19 are no longer an excuse for inaction or failing to adhere and follow regulations.

Customer service is to return to pre-crisis levels and many energy suppliers have stepped up with many call centre staff returning to their roles.

During the crisis, Suppliers were dealing with reduced call volumes due to them asking customers to call only in the case of urgent issues. Now, they will be expected to answer all calls and deal with all issues.

Ofgem in its letter to suppliers outlined key customer service areas that must be adhered too. These include:

• An energy supplier must make it easy for a customer to contact them across a range of channels including via the phone, email, online chat service or app.
• Customers must receive a quick reply and receive timely resolutions to issues they may have.
• Emergency contacts are to be prioritised and the most vulnerable customers continued to be added to the PSR
• A supplier must address any complaints that may have built up throughout the lockdown and resolve any issues.

Meeting obligations

In July, energy suppliers will have to meet their obligations and start to pay compensation to any customers they fail such as the failure to attend an appointment when expected or failing to complete a switch within the 15 working day period.

“The regulator recognises that things can change quickly, and suppliers will need to adapt to the evolving circumstances. Suppliers should continue to work hard to minimise any disruption or harm to customers and should continue the current direction of travel towards a new normal. We recognise this is an evolving situation, and where issues arise that are unavoidable consequences of the continuing effects of COVID-19 we will- as always- continue to take a pragmatic approach to compliance,” said Jonathan Brearley, the chief executive at Ofgem. 

Energy Suppliers can resume chasing unpaid bills

Energy suppliers have also been permitted by Ofgem to start collecting any money owed to them by customers.

In a letter sent to suppliers the regulator said that while many customers are struggling to pay their bills because of the COVID-19 crisis, it understands that firms could not stop debt collecting indefinitely.

At the start of the crisis, Ofgem was criticised for allowing debt collecting to continue despite the introduction of the lockdown. It quickly backtracked on this decision but now, with the easing of the lockdown continuing apace it will allow suppliers to chase unpaid bills.

“We recognise that suppliers cannot extend unlimited credit to customers and we anticipate suppliers will begin to restart debt management activities that may have been paused during the immediate crisis, however, any debt management practices must take into account a customers’ circumstances and ability to pay,” the regulator said.

With the economic outlook looking grim because of the lockdown and with many people set to lose their jobs energy suppliers will need to be careful about how they chase unpaid bills.

Going in too harshly will likely result in damages to a supplier’s reputation and them landing in hot water with Ofgem.

If you need assistance getting back on your feet following the COVID-19 crisis get in touch with Dyball Associates to see how our managed services can assist you.

Further Reading

Electricity Switching down 15% year on year in May and SSE reports drop in profits

Energy Supplier iSupply to pay £1.5 million for Priority Service Register and charging failings

How to lose customers: Some Energy Suppliers shamed for threatening customers with bailiffs during Covid-19 Pandemic

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Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.