22nd Oct 2019 09:50
(Alliance News) - The UK Office of Gas & Electricity Markets on Tuesday proposed new rules for existing energy companies to improve customer service standards, reduce risk of supplier failures and strengthen the so-called safety net.
The proposed new rules for existing suppliers would let Ofgem request independent audits of suppliers' customer service operations and financial status.
Ofgem, as part of the new rules, also plans to introduce new checks for growing energy suppliers before they hit certain thresholds of customer numbers, requiring them to ensure they have the capacity to effectively serve their customers. If energy suppliers fail the checks, they would be stopped from taking further new customers.
The regulator said rules will also be introduced to avoid disruption associated with exit of a energy supplier. These would ensure that, when a supplier fails, certain consumer protections around debt collection practices remain in place.
"The new proposals will create more accountability in the market, require more responsible and appropriate behaviour from suppliers in the market and reduce the risk and costs to consumers associated with supplier failure," said Mary Starks, Ofgem's executive director of consumers & markets.
"In the event a supplier fails, the changes will also strengthen the 'safety net' and improve the experience of customers when they are transferred, so that consumers can be reassured that whatever happens they will be properly protected," Starks added.
The regulator's safety net, or 'Supplier of Last Resort', process ensures customers always have an energy supply if a energy company goes bust.
Ofgem is consulting on the new rules until December 3.
By Tapan Panchal; [email protected]
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