Energy suppliers’ customer service standards plummet as prices rocket

Struggling households face a double energy shock after customer service levels have deteriorated at the same time bills spiked to record highs.

Chaos in the energy market caused by numerous suppliers going bust has led to a rise in issues over incorrect billing, credit balance transfers and waiting times on the phone.

This week most major suppliers suffered website outages as customers scrambled to submit meter readings on the eve of the price cap increase. These households now risk being overcharged for their usage.

Meanwhile, the number of homes being incorrectly billed for their energy has risen by a third this year, after 4.5 million households saw their energy supplier collapse. Households have seen huge delays in credit balances being transferred since September, complaints aggregator Resolver said.

Other billing complaints have also climbed. Consumer gripes about billing issues were up 74pc compared with August, the month before the crisis started. The number of overall complaints made to energy firms this month was roughly the same as last year, the research said.

Martyn James, of Resolver, said complaints would have been much higher had rising bills not caused “widespread fear and confusion”.

The recent surge in energy prices has made it less likely for customers to notice when they have been overcharged, he said.

“Even when bills go up at a higher rate than the 54pc price cap rise – say, three times the current bill – people still don’t know if that’s correct or an error,” Mr James said. “It’s only the bonkers bills that prompt people to complain.”

He added: “In other words, it’s only when it’s clear there’s an error people are seeking help. People are simply paralysed by the situation and don’t think they can complain.” The price cap rose by 54pc, to £1,971 a year, yesterday. It is expected to reach £ 2,490 in October, when the price cap rises again, according to analysts Cornwall Insight. Mr James said customers were already reporting “big delays” in getting through on the phone to their supplier, with many giving up after failing to make contact. There had also been a spike in complaints over “back billing” – charging customers for debts that are more than 12 months old, a practice which is banned by the regulator. Incorrect billing was an issue in the energy market long before the crisis took hold. Last year regulator Ofgem revealed that energy firms had overcharged people on a million occasions.