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Which? responds to concerns that support on energy bills is outdated

Which? has called on Ofgem to penalise underperforming energy suppliers and to work with government and suppliers on targeted bill support, saying customers are struggling to understand bills and pricing.

A newspaper on a kitchen table beside a model of rules and regulation

Which? published a statement on 26 July 2022 responding to concerns that support on energy bills is outdated, calling on the energy regulator Ofgem to penalise suppliers that fail to improve and to work with government and suppliers on targeted help for those most in need1.

The consumer body said its research shows many customers are struggling to understand their bills and pricing, and that it has heard concerning stories of consumers having their energy direct debits rise dramatically as a result of miscalculations1. It said Ofgem must continue to stop poor performance and quickly step in to impose penalties on any suppliers that fail to make the necessary improvements1.

Rocio Concha, Which? Director of Policy and Advocacy, said:

"At a time when consumers are paying more than ever before for energy, the regulator must work with the government and suppliers to explore ways of offering targeted support to those in most need of help before they have to turn to debt charities."
Which?1

The statement does not set out the level of any penalties, the form targeted support should take, or a timetable for Ofgem or the government to act. Those details have not been reported1.

Why it matters for households

The statement points to two separate problems for a household's energy independence: whether a supplier bills accurately, and whether help reaches people before they fall into debt. A direct debit set too high takes money out of a household budget before the energy is used, and the statement says Which? has heard of rises caused by miscalculations1. Which? also says many customers struggle to understand their bills and pricing, which affects the ability to check a charge or challenge it1.

The call for targeted support before people turn to debt charities places the emphasis on help arriving earlier rather than after arrears build up1. The Ofgem guide sets out what the regulator covers, and the help with energy bills in England page covers support and debt for households there, with equivalent pages for Scotland, Wales and Northern Ireland, where the market operates separately1. Standing charges and policy costs, which sit on bills alongside unit rates, are covered in the standing charges and policy costs and levies pages.

What happens next

No dated next steps are given in the statement. Which? does not say when it expects Ofgem to act on penalties, or when talks with government and suppliers on targeted support would begin1.

Sources1 cited
  1. Which? responds to concerns that support on energy bills is outdated - Which?, which.co.uk