Ofgem plan to scrap rules on how energy suppliers communicate with their customers.
Energy regulators, Ofgem plan to abolish prescriptive” rules on how energy suppliers provide information to their customers, with the hope of improving supplier-customer contact.
Ofgem issued an open letter to industry stakeholders which announced the plan to reform how, when and what suppliers communicate to their customers. The open letter suggests a shift in approach, with more reliance on principles rather than detailed and sometimes complicated rules.
Ofgem believe this change will promote innovation & competition, as well as providing “comprehensive protection” to customers. It is also thought this revision will put more responsibility on suppliers to deliver positive conclusions for their customers, placing greater reliance on Ofgem’s Standards of Conduct.
However, not every rule will be scrapped, with certain allowances made where a minimum standard is expected or where Ofgem feels there is “only one acceptable way of doing things”.
Neil Barnes, a spokesperson at Consumers and Competition said: “We no longer consider that having a significant volume of prescriptive customer communications rules in our supply licences is the best way to deliver positive outcomes for consumers.
While there will continue to be areas where prescription is appropriate, we have increasing evidence that our existing prescriptive framework cannot keep up with market developments. The market has evolved and so too must our rulebook.”
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