New energy rules proposed for the UK – including compensation for unexepectedly high bills

Prime Minister Keir Starmer and the Department for Energy Security and Net Zero have announced a new package of protection measures to protect energy consumers in the UK.

The current system makes it too difficult for consumers to access proper compensation, the department said. Companies have eight weeks to respond to requests, and if they do not respond or complaints go unresolved, then the onus is on consumers themselves to self-refer to the Energy Ombudsman.

This produces a situation in which consumers often do not access the compensation they are entitled to due to time pressures or fatigue with a complex system.

These reforms will take the pressure off consumers and onto the companies to ensure that consumers get the compensation they deserve. Doing so will ensure energy consumers are better protected and empowered to take action when necessary, the department said.

These include proposals to make compensation fairer, quicker and easier, and cover areas including:

• Working with Ofgem to look at expanding automatic compensation to cover more key issues faced by consumers, including excessively long call waiting times, unexpectedly high bills when suppliers fail to adjust direct debits, suppliers not responding to complaints, or suppliers not complying with Energy Ombudsman final decisions
• The government is working with Ofgem to look at further increasing the value of base-level compensation from £40, following the first increase since the payments were last set a decade ago
• Strengthening the Energy Ombudsman’s powers so that suppliers must comply with its final decision or pay compensation to the consumer
• Cutting the time before complaints can be escalated to the Ombudsman from eight to four weeks.
• Making referrals to the Ombudsman automatic, instead of people having to do it themselves

The proposals follow confirmation that 2.7 million extra households will receive £150 off their energy bills this winter as the Warm Home Discount is expanded.

“Through our Plan for Change we are delivering an energy market consumers can trust, putting an end to unfair practices, holding suppliers to account, and ensuring that the consumer always comes first,” said Minister for Energy Consumers Miatta Fahnbulleh   

“Today’s announcement is about taking the next steps – helping households to get fairer, quicker, easier compensation when things go wrong.”

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