Energy regulator Ofgem has proposed a series of reforms designed to improve standards of customer service for businesses and households.

The reform proposals come just a day after Care England called on the regulator to protect care home providers from hidden energy costs.

Neil Lawrence, director at Ofgem, said: “Suppliers are short-changing too many of their customers, who deserve better. 

“Customers need more support when they are struggling and should be able to contact their supplier without frustration or undue delay when they need help. 

“Suppliers are short-changing too many of their customers, who deserve better.”

The proposals include consulting on:

• Introducing better complaint handling between suppliers and businesses
• Extending micro business protections to all businesses so energy bills spell out what is being paid to energy brokers plus allowing businesses to resolve disputes through a redress scheme
• Creating better guidance over ‘deemed contract rates’ between customers who have not yet agreed contractual terms with a supplier to avoid problems like overcharging. 

The reforms also call for further consideration for vulnerable domestic consumers on non-domestic contracts, including people who live in care homes, social housing and in mobile home parks – who are at risk of missing out on important protections. 

Corin Dalby, the founder of Box Power CIC and the leading voice behind the letter which was received by Ofgem calling for reform, said: “It’s great to hear Ofgem, under pressure, has finally acted on the issue of transparency on broker fees for all firms.

“Box Power CIC’s campaign, backed by eight leading UK trade bodies, shows the incredible impact a coalition can have when we all come together and press for positive change.

“Ofgem’s proposal to extend the licence condition which applies to micro-businesses to all firms would mark a huge step forward in the fight for fairness for industries across the UK, and we at Box Power are proud to have spearheaded the efforts towards achieving that.”