Major crackdown on energy firms to shield ‘thousands from freezing in homes’
OFGEM has launched a sweeping crackdown on suppliers to help shield thousands of households from freezing in their homes due to disconnections.
Energy customers are set to benefit from a new 24-hour hotline to help resolve gas and electricity disconnections outside of working hours, The Sun can reveal.
The new helpline will be launched based on the results of a consultation.
Currently, energy firms only offer 24/7 helplines for serious emergencies, such as gas leaks or fires.
Vulnerable low-income households, often using prepayment meters, can also call a number to top up their meters if they become disconnected after hours.
However, these calls are frequently automated with a robot or AI, leaving those experiencing actual technical faults with significant difficulty outside of regular hours.
Meanwhile, those with credit meters have little to no support if their gas or electricity meter malfunctions or if their supply is disconnected in the evening or over the weekend.
The regulator says that approximately 83,000 customers seek assistance each year between 8pm and 8am due to being cut off from their supply due to meter faults.
In response, Ofgem has launched a consultation to activate a dormant rule requiring all energy suppliers to provide their own customer service helplines at all hours for disruptions due to gas or electricity meter faults.
This licence condition was initially introduced as dormant in October last year when the energy watchdog announced a series of new rules making it easier for customers to contact their suppliers.
However, Ofgem is “not satisfied that enough progress has been made”.
A spokesperson for the regulator said: “If a customer is cut off because of an issue with their meter they should be able to access help and support whether that’s during the day, overnight, or on a weekend.
“Being cut off from your energy supply is a very serious matter and for some vulnerable customers it can have dangerous health and safety implications.
“So, while we have allowed energy suppliers and network operators time to develop a collaborative solution, we are not satisfied with the progress that’s been made.
“We are committed to driving forward a solution that means consumers are not left without help when they need it.”
Industry stakeholders and charities, including National Energy Action (NEA), have welcomed the news.
Peter Smith, director of policy at NEA, said: “It’s right that the regulator is requiring better performance from suppliers in reconnecting households to their energy at all times of day.
“Meter issues can happen at any time of day so all suppliers achieving this requirement would be hugely beneficial for households who face freezing in their homes over winter if their supply is cut off.”
How will the new system work?
Ofgem is now consulting on how it can get suppliers to set up a 24/7 helpline for disconnections.
One proposal under consideration is for suppliers to create their own dedicated helplines for this purpose.
Alternatively, an industry-wide number could be introduced, allowing customers to call a single number regardless of their supplier.
Anyone calling this helpline would then be automatically routed to their own supplier’s customer service team.
Single helplines that direct customers to the appropriate service for specific issues are already a staple within the domestic energy industry.
For example, if a customer suspects a gas leak, they can simply call 0800 111 999 for prompt help.
Similarly, in the event of a power cut, individuals can dial 105, no matter which energy company they are with.
In the financial sector, those concerned about contacting their bank and unsure of the correct number can dial 159 to be directly connected.
In the meantime, Ofgem will consult on the methods of implementing the new 24 hour hotline until December 20.
The regulator plans to release its findings in early 2025, with a solution set to be rolled out later in the year.
What energy bill help is available?
There's a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
Some consumer rights experts have criticised the new crackdown as being “too little, too late”.
Scott Dixon, the complaints resolver, said: “Billing, customer service and meter issues are the biggest issues consumers have with energy providers.
“Energy suppliers need to make it easier for customers to contact their suppliers and put customers at the heart of their business, particularly vulnerable households and customers who need extra help.
“Making it difficult to speak to anyone about issues and deploying useless chatbots and AI to cut costs is a shortsighted approach.”
Dixon also noted that the new helpline does little to assist those with malfunctioning smart meters who are not disconnected.
A significant number of these devices still operate in “dummy mode”, where data is not automatically transmitted to energy suppliers.
According to figures published by the Department for Energy Security and Net Zero (DESNZ) in August, some 3.5million smart meters were not operating in June 2024.
Customers have reported being hit by massive bills caused by faulty meters.
Smart meters were first introduced to homes in 2011, with the government initially aiming to install one in every UK home by 2020.
This deadline has since been extended to 2025.
The gadgets are designed to eliminate the need for traditional meter readings, providing more accurate billing based on actual usage rather than estimates.
They also enable users to monitor their energy consumption at various times of the day and night.
An in-home display is also usually provided, which connects to the meter and shows your energy usage and the cost in pounds and pence.
But if your device isn’t working as expected, you could be billed inaccurately for your usage.
Earlier this week, Sun Money highlighted one of the unusual reasons why your smart meter might be operating in “dumb” mode.
If your energy supplier won’t agree to fix your faulty device, we recommend that you submit a formal complaint.
How do I complain about my energy supplier?
SIMILAR to financial services firms, energy companies have to have a complaints procedure for customers to follow.
When you make a complaint, follow this procedure so they have the information they need to resolve the issue.
Explain the problem and what you want your supplier to do about it.
Check your energy supplier’s website for an explanation of how to launch a complaint.
Energy suppliers have eight weeks to respond and come to a decision.
If it doesn’t or you’re unhappy with the response, you can take the firm to the Energy Ombudsman.
The Energy Ombudsman may be able to help if you have a complaint about an energy or communications provider.
Before submitting your complaint to it, you must have logged a formal complaint with your provider and worked with the firm to resolve it.
You must also have received a so-called deadlock letter, where the provider refers your complaint to the Energy Ombudsman.
You can also complain if you haven’t had a satisfactory solution to your problem within eight weeks.
The Energy Ombudsman then bases its decision on the evidence you and the company submit.
If you choose to accept its decision, your supplier then has 28 days to comply.
The Ombudsman’s decisions are binding on the energy company.
If your supplier refuses to follow the instructions, the Ombudsman may contact Ofgem to remedy the situation, but there’s no set period for escalating issues to the regulator, and it’s not up to the customer.
If an individual chooses not to accept the Ombudsman’s final decision, they lose the right to the resolution offer.
Customers still have the right to take their complaint further through the courts.
But remember, this can be a costly and lengthy exercise, so it’s worth thinking carefully before taking this step.