Domestic energy complaints fall by a third in 2016

The total number of complaints by domestic energy consumers fell by 32% last year, according to data published jointly by Ofgem and the Energy Ombudsman. The number of complaints dropped from around 5mn in 2015 to 3.5mn complaints in 2016 – the lowest point in three years, says the regulator, which publishes complaints data quarterly. 

In addition, most large and medium suppliers solved on average at least 90% of complaints within eight weeks, the deadline after which complaints may be referred by individuals to the Energy Ombudsman. Nevertheless, data released by the Ombudsman reveals that, between January and December 2016, it required suppliers to ‘hand back’ £3.3mn through financial awards it made through case remedies. 

Chief Ombudsman Lewis Shand Smith commented: ‘The steady decrease in the volume of complaints over the last year is encouraging for the energy industry. At the same time consumers are rightly more demanding of their energy suppliers than ever before, taking service as well as cost into account. It’s clear that energy companies’ steps to improve their customer service are starting to pay off, but there is still more that could be done to ensure the service customers receive matches their expectations.’

Meanwhile, Ofgem is consulting on a proposal to lower the payments that some embedded generators, ie those connected to the lower voltage distribution networks, receive for producing electricity at peak times. Smaller embedded generators (with less than 100 MW capacity) can receive payments from suppliers for helping them to reduce the biggest element of the electricity transmission charges they face at peak times. Ofgem says the current level of payments is distorting the wholesale and capacity markets, and proposes to accept an industry proposal to reduce the payments from the current level of around £45/kW to around £2/kW, with the reforms to be phased in over three years from 2018 to 2020.