Energy Ombudsman complaints at a record high

Complaints made to the Energy Ombudsman by frustrated customers are at a record high, new data shows.

Figures shared with the BBC show 105,340 complaints were received by the Ombudsman in 2022, a jump of more than 50% compared to two years before.

The data comes as energy suppliers are under intense scrutiny over their practices amid rising bills.

Energy UK, which represents suppliers, said the Ombudsman “plays an important role” in resolving complex cases.

Customers turn to the Energy Ombudsman to independently handle disputes between them and their supplier if it has failed to resolve their issue.

The main cause of the complaints are to do with incorrect billing, poor customer service and problems switching suppliers, BBC Radio 4’s the Money Box programme found.

Of the cases heard, 75% ended up being concluded in the customer’s favour.

During the last year, nenergy bills have soared for UK households as the cost-of-living crisis deepens.

The price hike is centred around the Ukraine war reducing supplies of Russian gas, as well as prices rising because of the demand for energy skyrocketing after Covid restrictions ended.

To deal with the surge the government introduced an energy price guarantee to cap bills for UK households at £2,500 a year for gas and electricity, rising to £3,000 in the spring.

It also introduced a cost-of-living payment, with all households automatically getting a one-off £400 discount on their fuel bills, spread over six months between October 2022 and March 2023.

But data from Which? suggests UK households are struggling to keep up with their bills, with some 2.3 million UK households missing an essential payment last month, up from 1.9 million in December.

Suppliers are also facing renewed scrutiny after Ofgem asked them to suspend the forced installation of prepayment meters into the homes of vulnerable people.

Energy suppliers were being given permission to force entry into the UK’s poorest homes to install prepayment meters when customers fell behind on bills, an i newspaper investigation in December revealed.

Pre-payment meters are the most expensive way to pay for energy, with customers’ bills increasing by more than £700 in the last year. There are more than four million UK households on prepayment meters.

An investigation by The Times this week found that debt agents for British Gas had broken into vulnerable people’s homes to fit meters.

Following this, energy companies have been asked by the industry regulator Ofgem to suspend the forced installation of prepayment meters.

Jonathan Brearley, the regulator’s boss, said he had ordered the review into pre-payment meters to “uncover poor practice” and that he would not hesitate to take the “strongest action in our powers” where needed.

On Thursday, Chris O’Shea, the boss of Centrica which owns British Gas, told the BBC: “There is nothing that I can say that can express the horror I had when I heard this, when I read this. It is completely unacceptable. The contractor that we’ve employed, Arvato, has let us down but I am accountable for this.”

Energy UK said while it “works tirelessly” to resolve complaints, its members have seen a fourfold increase in the number of people contacting them.

A spokesperson for Energy UK said: “With millions of people struggling to pay energy bills as the cost of living soars, more people than ever are contacting their energy supplier for help. Customer service teams have seen a fourfold increase in customer contact and are doing their best to respond to the huge numbers of customers getting in touch – often about complex issues.

“Our members work tirelessly to resolve complaints themselves, however where they are unable to come to a resolution with the customer themselves, the Ombudsman plays an important role in making sure complaints can be resolved.”