Labour cuts time for resolving energy disputes to a month

Energy customers will be able to escalate complaints to the Energy Ombudsman more quickly under new government reforms aimed at speeding up compensation and forcing suppliers to act when things go wrong.

The Department for Energy Security and Net Zero has confirmed it will shorten the time before customers can take unresolved complaints to the Ombudsman from eight weeks to six weeks.

The Ombudsman will also be asked to cut the time it takes to issue decisions from six weeks to four weeks, reducing the overall complaints journey by a month.

The changes form part of the government’s Fairer, Faster Redress in the Energy Market response, published yesterday, following a consultation launched last year.

Ministers say the reforms are designed to rebuild trust in the energy market after years of poor service, delayed responses and complaints that too often leave customers out of pocket.

The government said suppliers have made some progress, with overall customer service satisfaction reaching 77% in January 2026 and complaints per 100,000 customers falling 15% compared with the same period a year earlier.

But it said there is still much further to go.

The response cites a Which? survey from 2024 which estimated around 1.2 million energy customers were left £166 million worse off because they gave up trying to resolve problems, while 8.9 million consumers experienced emotional harm from poor service.

Minister for Energy Consumers Martin McCluskey said: “For too long, parts of the energy market have been letting consumers down and not paying up when mistakes are made.

“When complaints are raised with suppliers, they can take weeks to respond and often take no action at all. That doesn’t just affect customers directly; it damages trust and confidence in the whole market.”

Under the new proposals, redress scheme providers will be given stronger powers to levy penalties against suppliers that fail to implement Ombudsman decisions on time or in full.

The government will also clarify the legal route for consumers who need to pursue remedies through the courts as a last resort.

Ministers said this is intended to give customers more confidence that Ombudsman rulings will actually be delivered, rather than becoming another stage in a slow and frustrating process.

The government will also strengthen signposting to the Energy Ombudsman, including clearer communications and potentially QR codes or direct links that make it easier for consumers to start a case.

It will continue exploring automatic onboarding, where customer complaint details are transferred to the Ombudsman with consent once a complaint has been open for six weeks or reaches deadlock.

However, ministers have ruled out proactive outreach without consumer consent, after respondents raised concerns over unsolicited contact, data protection, premature escalation and costs being passed onto bills.

The reforms will apply to domestic energy customers and eligible small businesses.

The government also intends to extend protections to heat networks, though timing will depend on Ofgem, the Ombudsman and the wider rollout of the new heat network regulatory regime.

McCluskey added: “These measures will cut the time taken for complaints to be dealt with by a month, while incentivising suppliers to deal with complaints sooner to avoid escalation.”

The changes are expected to be taken forward through the Energy Independence Bill and wider Ofgem reforms.