Ofgem Warns Energy Firms Over Complaints

The energy regulator has written to providers demanding action on how they handle customer complaints over bills and service.

Ofgem said more than half of consumers told a survey they were not satisfied with the so-called big six energy providers' complaints processes.

According to Ofgem, despite claims that the firms were improving service, complaints were continuing to rise.

It said a survey showed 57% of domestic and 52% of small business consumers were not satisfied with the way their complaint had been handled by their energy supplier.

Furthermore, in nearly half of cases where the supplier considered the case resolved, the customer did not.

It said satisfaction with npower and Scottish Power had fallen markedly, with only SSE managing to maintain levels of satisfaction found two years ago.

The energy regulator said it would investigate firms over rising complaints

Ofgem chief executive Dermot Nolan said: "These satisfaction scores are frankly awful. Almost all energy suppliers need to improve their complaints handling as a matter of urgency.

"There are real business benefits to good complaints handling schemes, and it shouldn't need a regulator to tell companies about the importance of this.

"Suppliers must now tell their customers what steps they will be taking to put things right."

Mr Nolan said Ofgem was investigating npower over its spiralling complaints and warned it would "take action" against others if need be.

The big providers have been under fire for almost a year following a succession of above-inflation price hike announcements.

Earlier this month the six firms launched a campaign to reunite former customers with £153m of unclaimed credit on accounts, following a demand from Ofgem.

Although the big six firms - British Gas, npower, EDF, Scottish Power, SSE and E.On - are still the dominant providers in Britain, their market share is leaching to smaller independents.

A study by Cornwall Energy found that while they still control 92.4% of the market, it is down from 99.8% five years ago.

The Competition and Markets Authority has since launched an investigation into the structural nature of the energy sector, where companies can generate power and then sell it on at a profit to their residential arms.

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