Ofgem has decided to proceed with the introduction of a new standard licence condition, SLC 31G.3A, requiring domestic energy suppliers to offer a range of contact methods, as set out in its July statutory consultation1. The decision was published on 18 October 2023, and the licence changes take effect from 14 December 20231.
The regulator said it received over 50 responses to the consultation, with mixed feedback. Consumer representatives were generally supportive, while some suppliers argued the contact ease proposals were too prescriptive, too expensive and needed longer to implement1. Ofgem also published an impact assessment, citing a possible costs range of around £2 to £4 per customer per year, not including any illustrative benefits it has monetised1.
The new conditions require suppliers to be available via contact methods that meet customer needs, to be open at times that meet customer needs, to be free for customers struggling to pay, and to prioritise vulnerable customers who need immediate support or their representatives1. Ofgem also cited call waiting times as an issue, describing waits "significantly or consistently longer than specific time periods to respond to queries (eg 5 minutes on average each month to answer phone calls)"1.
"We have decided to proceed with our proposed introduction of SLC 31G.3A as set out in our statutory consultation."
Alongside contact ease, Ofgem is introducing requirements for suppliers to offer debt repayment plans at the earliest opportunity and to give due consideration to temporary repayment holidays where appropriate1. Repayment plans must be based on ability to pay, including considering temporary pausing of scheduled repayments when customers are unable to pay1. Ofgem said it updated the drafting to clarify this condition relates only to customers who are having or will have difficulty paying their energy bills1.
Suppliers will also be compelled to publish information on their Citizens Advice star rating performance1. Ofgem said overall domestic consumer satisfaction with supplier customer service fell from 74% in Q4 2018 to 66% in Q4 20221.
Why it matters for households
The rules change what a household can expect when it needs to reach its supplier, whether to query a bill, understand consumption or ask for help paying. Contact methods, opening hours and free access for those in payment difficulty become licence obligations rather than discretionary service choices1. For a home trying to manage its energy costs, the ability to reach a supplier without charge and at times that suit, and to have a repayment plan set against ability to pay, bears directly on whether a debt spiral is avoided. The requirement to publish Citizens Advice star ratings gives households a comparable measure of supplier performance when choosing or reviewing a tariff, though the decision does not set out how prominently that information must appear.
What happens next
The new rules take effect from 8 November 2023, with the Code requirements remaining in place until that date1. The licence changes set out in the modification notices published alongside the decision take effect from 14 December 2023, 56 days after publication1. Ofgem said it is keen for a voluntary industry solution to come forward in a timely manner, and that the licence requirement on contact ease will only be brought into effect after consultation and with at least two months' notice1. All suppliers will need to have regard to Ofgem's guidance document1.
Sources1 cited
- Consumer standards - Decision, ofgem.gov.uk