Ofgem published a statutory consultation on proposed changes to consumer standards licence conditions on 26 July 2023, the third stage in a process that began with a policy consultation on 3 May 20231. The changes concern the standard conditions of the gas and electricity supply licence, and cover how easily domestic customers can contact their supplier, support for customers struggling with bills, and publication of customer service performance information1.
The consultation followed a policy consultation that drew over 50 responses1. Ofgem described the responses as mixed: consumer representatives were generally supportive and considered suppliers' customer service currently poor, while some suppliers were concerned the contact ease proposals were too prescriptive, too expensive, required further clarification and needed longer to implement1. Ofgem has cited a fall in overall domestic consumer satisfaction with supplier customer service from 74% in Q4 2018 to 66% in Q4 20221.
The proposed licence conditions cover contact methods, opening hours, call waiting times and prioritisation of vulnerable customers1. Ofgem's stated expectations include that suppliers:
| Requirement | Detail |
|---|---|
| Contact methods | Be available via contact methods that meet customer needs |
| Opening hours | Be open at times that meet customer needs |
| Cost to customer | Be free for customers struggling to pay their energy bills |
| Prioritisation | Prioritise vulnerable customers needing immediate support, or their representatives |
| Debt support | Be proactive and offer debt repayment plans at the earliest opportunity |
| Repayment holidays | Give due consideration to temporary debt repayment holidays, where appropriate |
Ofgem also proposed new licence requirements compelling suppliers to publish information on their Citizens Advice star rating performance1. On repayment plans, Ofgem stated that plans must be based on ability to pay, including considering temporary pausing of scheduled repayments when customers are unable to pay1. The consultation also set out a possible cost range of around £2 to £4 per customer per year, not including any illustrative benefits monetised1.
"26/07/2023 Stage 3: Statutory consultation on proposed consumer standards licence changes published."
Why it matters for households
The proposals concern the practical terms on which a household deals with its supplier: how quickly a call is answered, whether contact is free for those in payment difficulty, and whether a repayment plan reflects what a household can actually afford1. For a home managing its energy costs, the ability to reach a supplier without cost or delay, and to negotiate repayments based on ability to pay, affects how far a household can control its own energy arrangements. The requirement for suppliers to publish Citizens Advice star ratings gives households a published measure of supplier performance to compare1. Ofgem has said it is keen for a voluntary industry solution to come forward in a timely manner1.
What happens next
Under the timetable set out, new rules would take effect from 8 November 2023, with Code requirements remaining in place until that date, and the licence changes set out in the modification notices would take effect from 14 December 20231. Ofgem has said the majority of licence conditions will go live from 14 December 2023, 56 days after the decision is published1. One licence requirement would only be brought into effect after consultation and with at least two months' notice1.
Sources1 cited
- Consumer standards - Decision, ofgem.gov.uk