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Consultation on fairer, faster energy redress opens

The government has opened a consultation on strengthening the Energy Ombudsman, proposing faster complaint handling, automatic referrals and a power to order compensation when rulings are not implemented.

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

The Department for Energy Security and Net Zero (DESNZ) published a consultation on fairer, faster redress in the energy market at 9:30am on 23 October 2025, seeking views on strengthening the role and powers of the Energy Ombudsman in the retail energy market1. The consultation runs until 11:59pm on 4 December 2025 and applies to England, Scotland and Wales1.

The consultation sets out four main proposals. It proposes reducing the window before complaints can be escalated to the Ombudsman from 8 weeks to 4 weeks, with exceptions for complex cases, and reducing the time the Ombudsman has to consider complaints to 4 weeks1. It also explores how to make referral more automatic to reduce the burden on consumers, including advanced signposting, automatic onboarding of consumer details and proactive outreach1.

Two further proposals concern enforcement. DESNZ proposes giving the Ombudsman an explicit power to require suppliers to compensate consumers where a ruling has not been implemented on time, and strengthening the standing of the Energy Ombudsman by designating it in legislation and giving statutory weight to Ombudsman decisions by placing an explicit obligation on suppliers to implement Ombudsman rulings1.

"We are seeking views on strengthening the role and powers of the Energy Ombudsman in the retail energy market."
DESNZ, Fairer, faster redress in the energy market1

The consultation focuses on complaints against domestic energy suppliers, complaints by small enterprises against non-domestic energy suppliers and complaints against heat networks1. It states it will not focus on electricity and gas networks, where there is not evidence of consumer detriment to justify an intervention, nor in relation to Third Party Intermediaries, which has recently been consulted on separately1. DESNZ says it will seek views from suppliers, consumer advocacy groups, industry bodies and any other impacted stakeholders, including the general public1.

ProposalDetail
Escalation windowReduced from 8 weeks to 4 weeks, with exceptions for complex cases
Ombudsman decision timeReduced to 4 weeks
ReferralExplore automatic referral, advanced signposting, automatic onboarding and proactive outreach
Late implementationExplicit power to require compensation where a ruling is not implemented on time
Statutory standingDesignation in legislation and statutory weight for Ombudsman decisions

Why it matters for households

Redress is the backstop when a supplier fails to resolve a complaint. The proposals would shorten the period a household must wait before escalating a dispute, and shorten the time the Ombudsman has to decide it, which changes how quickly a disputed bill, meter problem or credit balance can be settled. Automatic referral and proactive outreach would shift some of the administrative burden away from the consumer, who currently has to initiate escalation.

The proposal to give Ombudsman decisions statutory weight, and to allow compensation where a ruling is not implemented on time, addresses the gap between a decision being made and a supplier acting on it. For a household, that is the difference between a ruling on paper and money or a correction actually applied to the account. The consultation does not cover electricity and gas networks or Third Party Intermediaries, so complaints in those areas are not affected by these proposals.

What happens next

The consultation closes at 11:59pm on 4 December 20251. DESNZ has not reported a date for publishing its response or for any resulting changes to the Ombudsman's powers.

Sources1 cited
  1. Fairer, faster redress in the energy market - GOV.UK, gov.uk