Ofgem audits will need 'firm hand'

Energy-supplier audit due later this year

Energywatch says moves to regulate complaints handling of energy suppliers will help pubs — but only if the process is properly enforced.

From 1 July, suppliers will be audited on how they handle complaints from small business and domestic customers.

Energy regulator Ofgem will be able to fine suppliers 10% of turnover for non-compliance. It promises an audit of suppliers later this year.

Energywatch chief executive Allan Asher said: "Although 10 years overdue, Ofgem's mandatory complaint-handling standards are a necessary and positive step. Without an agreed definition of what constitutes a complaint, energy suppliers have been in denial and have little idea of how many complaints they receive.

"Our data on the experience of customers of the big six suppliers proves that more regulation is needed to ensure companies take customer complaints seriously.

"Monitoring and auditing of the new standards is vital and will require a firm hand by Ofgem and the new organisation replacing Energywatch in October this year."

"Many do not even monitor whether consumers are calling back again and again about the same problems.

Changes

n Customers won't have to repeat all the details of the complaint

n Suppliers can't insist complaints must be in writing

n Suppliers must publish information, verified by Ofgem, on complaints received

Green energy is good for the bottom line

Electricity from renewable sources such as wind or solar power is now cheaper than non-renewable for pubs, according to price comparison website makeitcheaper.com.

This is due to the Climate Change Levy, introduced on 1 April, which means higher

taxes for non-renewable ("brown") sources

of energy.

The website said the best "green" tariff available for a three-year fixed contract is 9.42p

per unit, compared to 9p for brown.

But when the new levy is added, renewable energy is marginally cheaper - by 0.036p. The pub using 20,000 units a year on a single rate metre would pay £2,316 for brown electricity and £2,308 for green.