Pubs due better deal on energy complaints

Energy firms that fail to handle licensees' complaints properly will face heavy fines under new rules.

Regulator Ofgem yesterday unveiled tough new complaint handling rules, which will come into force on July 1.

It affects complaints from all small business and domestic customers.

However watchdog energywatch said the measures were "10 years overdue".

Companies that fail to meet the new standards could be fined up to 10 per cent of turnover by Ofgem.

The regulator will carry out an audit later in the year to ensure companies are meeting the new obligations and to help promote best practice.

Alistair Buchanan, Ofgem's chief executive, said: "We expect the new standards to add to customer confidence by underpinning the pressure that competition places on suppliers to treat customers well.

"I'm confident that the companies will rise to the challenge. But if they don't - we now have the ability to take regulatory action."

Under the new rules customers will no longer have to repeat all the details of the complaint if they need to contact a supplier more than once, while suppliers will not be able to insist complaints are put in writing. Firms will also be forced to publish information about how many complaints they have received.

The measures were welcomed by energywatch but the watchdog warned they will not work without effective monitoring and auditing.

Allan Asher, chief executive of energywatch said: "Although 10 years overdue, Ofgem's mandatory complaint handling standards are a necessary and positive step.

"Without an agreed definition for the industry of what constitutes a complaint, energy suppliers have been in denial and have little idea of how many complaints they receive. Many do not even monitor whether consumers are calling back again and again about the same problems."