Ofgem considering change to energy rules - it could mean you get more cash when things go wrong

Ofgem is considering changes to compensation rules

Ofgem is considering increasing the level of compensation that is awarded to energy customers when they’re let down by their supplier.

Under current rules, energy suppliers must pay customers £30 when they fail to meet minimum standards that are set out in the Guaranteed Standards of Performance regulations. Ofgem has today launched a consultation to increase this to £40. The type of scenarios where customers could be due compensation include if your energy supplier cancels an appointment last minute, fails to investigate an issue, or takes longer than five days to switch you.

The Guaranteed Standards of Performance was introduced in 2015 and the level of compensation has remained the same since then. It comes after the Ofgem price cap fell to £1,690 a year for the average dual fuel household paying by direct debit. But despite what its name suggests, the price cap doesn’t actually set a limit on how much you will pay for energy.

Instead, it sets a limit on unit rates for gas and electricity – so your total bill still depends on how much energy you’re using. The headline price cap rate is used to illustrate what someone with typical energy usage can expect to pay. Beth Martin, Director of Consumer Protection and Competition at Ofgem, said: “We’re working hard to drive up standards in the energy sector, and have introduced a series of reforms to make sure energy companies are doing everything they can to support their customers.

“The guaranteed standards of performance were brought in to make sure consumers get the service they deserve from their energy supplier, but we know things do go wrong from time to time. When that happens, consumers should be compensated fairly. With the cost of living increasing across the board, it’s right that we look again at the payment level to make sure this reflects inflation.”