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DESNZ announces reforms to improve access to Energy Ombudsman

The government has set out reforms to the Energy Ombudsman, cutting the time householders must wait before escalating a complaint and adding compensation when remedies are not carried out on time.

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The Department for Energy Security and Net Zero (DESNZ) announced reforms to improve access to the Energy Ombudsman on 17 June 20261. The measures reduce the complaint escalation timeframe from eight weeks to six weeks and introduce compensation for consumers when remedies are not implemented on time1. DESNZ said the shorter timeframe will cut overall waiting times by a month, to a maximum of 10 weeks2.

The Ombudsman will also be empowered to fine companies that do not comply with its rulings, and the government said new measures will clarify the route for consumers to go through the courts to hold suppliers to account as a last resort2. The reforms form part of a wider consumer protection package covering home upgrades, which DESNZ is consulting on2. Proposals include a public register of government approved installers, a single advice and support service covering the time a home is being upgraded, powers to ban installers and delivery partners from government schemes, and a data-backed system to spot installer performance issues earlier2.

Separately, from 17 June the Installation Assurance Authority (IAA) covers the cost of repairs to Energy Company Obligation 4 (ECO4) and Great British Insulation Scheme (GBIS) solid wall insulation up to £25,000, up from £20,000, where these fall within the terms of the original, still-valid guarantee, including cases where the original installer has gone bust2. The National Energy Foundation will also cover the cost of relevant repairs for some homes with defective ECO4 and GBIS solid wall insulation where the installer has gone out of business and the guarantee was cancelled, fraudulent or missing2. Homes eligible for free repairs will be contacted by the National Energy Foundation2.

The Energy Ombudsman said it has resolved complaints for over one million consumers, a milestone reached as it marks 20 years of service1. It handled 2,312 complaints about billing in its first year and accepted 123,000 cases in its record year in 20231. Its one millionth case involved Eva from London, who was left without electricity and gas heating for three days in December 2025 after her supplier disconnected her supply due to safety concerns during the installation of a smart meter1. The Ombudsman required the supplier to reimburse £240 for emergency call-out fees, apply a £350 goodwill credit and provide a formal written apology, and ruled that some of the costs paid for the electrician were Eva's responsibility1.

"reforms from the Department for Energy Security and Net Zero (DESNZ) announced on 17 June will improve access to Energy Ombudsman for consumers"
Energy Ombudsman1

Why it matters for households

The escalation timeframe sets how long a household must wait before an unresolved complaint can go to the Ombudsman rather than the supplier. Shortening it from eight weeks to six weeks brings a decision forward, and the government says the change cuts overall waiting times by a month, to a maximum of 10 weeks2. Compensation where a remedy is not implemented on time addresses the gap between a ruling and the supplier acting on it1. The power to fine companies that do not comply adds an enforcement step beyond the Ombudsman's current remit, and the courts route is described as a last resort2. For a household whose supply, meter or billing has gone wrong, these changes affect how quickly a dispute can be resolved and what happens if a supplier does not carry out what it has been told to do. The Ombudsman's own figures show the volume of cases it handles has risen sharply since 2006, from 2,312 billing complaints in its first year to 123,000 cases in 20231.

What happens next

Both elements are at consultation stage. Full details of the Energy Ombudsman reform are in the consultation "Fairer, faster redress in the energy market", and the home upgrade proposals are in "Reforming consumer protection for home upgrade schemes"2. Ofgem said it will continue to work closely with the Energy Ombudsman to implement the reforms set out by DESNZ1. The sources do not give a date for when the six-week timeframe or the compensation measures take effect.

Sources2 cited
  1. One million consumers helped by Energy Ombudsman… | Energy Ombudsman, energyombudsman.org
  2. Greater protections to restore families' trust in home upgrades - GOV.UK, gov.uk