Minister: energy revamp will help

A Government minister has assured the Morning Advertiser that the new energy protection scheme will not fail small businesses.

The new system, in place from October, saw Consumer Focus take over from Energywatch for handling complaints. The new Energy Ombudsman was also set up to make suppliers legally bound to resolve complaints.

The MA and six trade groups wrote to Trade Minister Gareth Thomas twice over the past year with concerns about the new scheme, such as the lack of a helpline specifically for small firms.

In a new letter to the MA, Thomas said: "While there would not be a dedicated help-line, it was considered complaints handling standards and redress schemes would provide significant benefits."

He conceded that "this potential gap could not be filled in the short term" but pointed out that energy regulator Ofgem will audit how the new scheme helps domestic and business users.

Thomas said the new complaints handling standards will require suppliers to "properly record and publish complaints data" and "clearly set out how their complaints handling procedures work". Suppliers can be fined if they don't abide by procedures.

He said access to the Ombudsman is free for the consumer, not suppliers, and "can award financial compensation if appropriate".

Thomas said: "The new complaint-handling standards and redress schemes will provide strong incentives to companies to handle complaints properly. These should address historically low levels of consumer satisfaction."

BII chief executive John McNamara said: "We will have to wait and see how the new system works."