Ofgem issued a Provisional Order against E.On on 2 February 2023, requiring the supplier to make rapid improvements to its customer service, after a Market Compliance Review rated its performance as having severe weaknesses1. The order obliges E.On to reduce call wait times and the rate of abandoned calls, and to report its customer service performance to the regulator every week1.
The review, which Ofgem said examined "how easily customers can contact their suppliers, and have any issues or complaints put right", assessed suppliers against information they submitted and additional performance data covering October to December 20221. Ofgem also drew on information from the Ombudsman Services: Energy, Citizens Advice and other consumer bodies1. It placed suppliers into four categories, and stated that no supplier was rated "No significant issues"1.
| Rating | Suppliers |
|---|---|
| No significant issues | None |
| Minor weaknesses | Bulb, Ecotricity, Green Energy, Shell, Octopus |
| Moderate weaknesses | British Gas, E Gas & Electricity, EDF, Good Energy, Outfox the Market, OVO, Scottish Power, SO Energy, Utilita, Utility Warehouse, Tru Energy |
| Severe weaknesses | E.On |
Ofgem said it had already begun compliance engagement with the suppliers in the moderate weaknesses category, to address policy or process weaknesses or to require action plans on performance1. It listed the problems found across the market as including long call wait times, high call drop rates, slow responses to written contacts, weaknesses in complaint processes and controls, incomplete management information, gaps in agent training or quality control, and high rates of complaints upheld by the Ombudsman Services: Energy, which it said suggested poor initial complaints resolution1.
"In light of serious concerns about E.On's current customer service performance, we have rated E.On 'severe weaknesses' and have taken the decision to immediately issue a Provisional Order requiring rapid improvements to their performance."
Ofgem said suppliers were already taking action following the review, including increasing customer service staff teams, training on different contact channels, improving the number and type of communications with customers, and improvements in IT technology1.
Why it matters for households
Contact with a supplier is the route to almost everything else a household needs from it: querying a bill, disputing a balance, arranging a payment plan, or challenging a meter reading. Ofgem stated that good customer service and being easy to contact is paramount because all other services offered by suppliers depend on consumers being able to access them1. Where call wait times are long or calls are abandoned, that access is lost, and unresolved problems can persist into billing and debt.
The review also links complaint handling to redress. High rates of complaints upheld by the Ombudsman Services: Energy indicate that problems were not fixed at the first attempt, meaning households may spend longer in dispute before a resolution is reached1. For a household trying to keep control of its energy costs, delays of that kind affect budgeting and payment arrangements rather than the price of a unit of gas or electricity.
The ratings apply to the supplier's service operation, not to its tariffs or its fuel sourcing, and no finding in the review concerns how a supplier generates or buys energy. The practical effect for a household is on how quickly and reliably it can get an answer when something goes wrong.
What happens next
E.On must report its customer service performance to Ofgem weekly as part of the Provisional Order1. Ofgem said it will periodically update its page on improving supplier performance with the progress suppliers are making on required actions1. No date has been reported for the conclusion of the order or for the next update.