Ofgem urges energy suppliers to improve customer service

Ofgem urges energy suppliers to improve customer service

Energy firms were today urged to improve their handling of customer complaints after research showed fewer than a quarter of consumers were satisfied with the way in which their gripes were dealt.

In a letter to the six biggest gas and electricity suppliers, the chief executive of the energy regulator Ofgem, Alistair Buchanan, said he was disappointed with the low level of customer satisfaction in complaint handling and expected to see improvements when the regulator looks at the issue again next year.

"It is in suppliers' best interests to ensure that the service they provide is of a high standard," he wrote. "This is clearly an opportunity for them to raise the bar to retain existing customers and attract new ones.

"With the systems and processes in place, the challenge now for companies was to really listen to what their customers were saying and look at how they could address their concerns."

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Ofgem told major gas and electricity firms to up their game and treat customers fairly, or potentially face penalties, and it named and shamed EDF Energy after a check "raised concerns as to whether [the supplier] was properly recording all complaints".

Although Ofgem's independent audit found suppliers had made the necessary systems investments and updated their processes in preparation for new complaint handling standards introduced last year, the changes have failed to convince consumers who gave the regulator a now familiar litany of power company shortcomings.

Consumers were particularly unhappy with the number of times they had to contact a supplier, the attitude of some staff, suppliers who promised to call back but didn't, and the fact that suppliers often viewed the problem as resolved when in the customer's eyes it was not.

Even the best companies – E.On and Scottish and Southern – left just 29% of customers happy after a complaint, while the worst – npower – satisfied just 16% of its consumers.

Audrey Gallacher, customer services expert for consumer watchog Consumer Focus, said the poor ratings came as no surprise.

"It is clear that the new standards are not yet paying dividends for consumers and that energy firms need to really listen to, and act upon, their customers' complaints. To help combat the high levels of complaints about energy billing the government must also roll out smart meters as soon as possible to make bills more accurate.

"In the meantime we would urge consumers who are dissatisfied with the service they receive to vote with their feet and switch supplier."

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