Energy suppliers urged to improve complaint handling

Energy regulator Ofgem has urged suppliers to up their game in complaint handling as consumer research found less than one in four customers were satisfied with the way gripes were dealt with.

While an independent audit commissioned by Ofgem found that suppliers had made the necessary systems investments and updated their processes in preparation for new complaint handling standards introduced last year, customers remained dissatisfied.

Research commissioned by the regulator found that consumers were particularly unhappy with the number of times they had to contact the supplier, suppliers who promised to call back but didn't, the attitude of some staff and the fact that suppliers often viewed the problem as resolved when in the customer's eyes it was not.

While there were low levels of satisfaction across all suppliers some performed better than others. Out of the big six, SSE and E.ON rated joint highest for satisfaction (29%) and npower was rated lowest (16%).

In a letter to the Chief Executives of the big six energy companies today, Ofgem Chief Executive, Alistair Buchanan, said he was disappointed with the low level of customer satisfaction in complaint handling and that he expects to see improvements when the regulator looks at the issue again next year. He advised:

"It is in suppliers' best interests to ensure that the service they provide is of a high standard. This is clearly an opportunity for them to raise the bar to retain existing customers and attract new ones.

With the systems and processes in place, the challenge now for companies was to really listen to what their customers were saying and look at how they could address their concerns."

In introducing the new standards Ofgem was also looking for suppliers to publish information on their complaint volumes to help customers in choosing supplier. An initial review of this information raised concerns as to whether EDF Energy was properly recording all complaints. Ofgem is investigating EDF Energy's compliance with the new regulations in this area.