Watchdog cracks down on energy complaints

Probe into ScottishPower extended

Energy market regulator Ofgem has expanded its complaints handling compliance case against Scottish Power.

The move came as the watchdog opened up three new investigations against First Utility, Ovo Energy and Utilita over their “poor handling” of customer complaints.

The body also called on seven other energy suppliers – British Gas, Utility Warehouse, EDF Energy, E.ON, Co-operative Energy, Npower and Perth-based SSE – to provide improvement plans on how they will deal with complaints in future.

SSE and Npower are currently going through a proposed multi-billion-pound merger of their domestic retail businesses in the UK.

Ofgem’s move follows its biyearly survey of complaints handling within the UK energy marketplace.

It found 57% of customers are dissatisfied with how their complaint had been dealt with, with 32% happy at their treatment.

Dermot Nolan, chief executive of Ofgem, said it is imperative suppliers deal with complaints properly.

He said: “Although the level of satisfaction about complaint handling has increased over the past two years, it is still unacceptably low. Some suppliers need to be doing considerably more to get the basics right and provide a service their customers deserve.

“We will be monitoring the level of all suppliers’ customer service performance particularly closely after announcing proposals to introduce a price cap to protect those on poor value default deals from being overcharged.

“We are ready to – and will – act against those who fail their customers.”